Insurance Issues With Older Homes

If your home is over 30 years old you may be required to upgrade the electrical, plumbing, heating system and/or roof covering before an insurance company is willing to provide you with a policy.

Some of the items that specifically may need replacing/upgrading are galvanized steel plumbing, 60-amp electrical service, knob and tube wiring and oil tanks over 20 years old.

Galvanized Steel Plumbing

Galvanized steel plumbing was commonly installed in homes built prior to 1950 and has an average life expectance of 40-50 years. This means that in most cases it has already surpassed its life expectancy. Galvanized pipes rust from the inside out which results in reduced water pressure and restricted water flow which in turn increases the risk of leaks an/or ruptures.

60-AMP Electrical Service

60-amp electrical service can pose the threat of overuse and overheating which potentially increases the risk of an electrical fire.

Knob and Tube Wiring

Knob and tube wiring is commonly found in homes built prior to 1950. It is considered a higher risk than copper wiring for several reasons:

1. There is no ground wire

2. The wires are highly susceptible to wearing and exposure given their age

3. The unintentional contact of the hot and neutral wires may potentially cause an electrical fire.

Oil Tanks

Oil tanks over 20 years old are highly susceptible to rusting and leakage. If a fuel oil leak occurs and is undetected the cost of the environmental cleanup is often over $15 000.

The requirements for inspections and upgrades vary widely between insurance companies. Please contact one of Buckley Insurance Broker's licensed insurance representatives to discuss your individual situation. You can also view an article from the Insurance Bureau of Canada on what insurance companies look for when insuring your home at:

www.ibc.ca/en/home_insurance/home_insurance_
explained/things_insurers_look_for.asp