Older homes have character, history, and craftsmanship you simply can't find in new construction. But when it comes to insurance, that charm comes with complications. If you own or are buying a pre-1970 home in Illinois, here's what you need to know about getting the right coverage at a fair price.
Why Older Homes Cost More to Insure
Insurance carriers view older homes as higher risk for two main reasons: they're more expensive to repair, and they're more likely to have claims.
When an older home sustains damage, repairs often trigger building code upgrade requirements. A simple plumbing repair might require bringing the entire plumbing system up to current code. A roof replacement might require new decking, ventilation, or structural reinforcement that wasn't needed when the home was built. These code upgrades can add 20–50% to repair costs.
Additionally, older building materials and systems are simply more prone to failure. Aging electrical wiring causes fires. Deteriorating plumbing causes water damage. Older roofs are more vulnerable to wind and hail. Carriers know this from decades of claims data.
What Carriers Look At
When underwriting an older home, carriers focus on four key systems:
| System | Red Flags | Rate Impact |
|---|---|---|
| Electrical | Knob-and-tube wiring, fuse boxes (vs. breakers), aluminum wiring | High — some carriers won't insure |
| Plumbing | Galvanized steel pipes, lead pipes, polybutylene pipes | Moderate to high |
| Roof | Age 20+ years, wood shakes, multiple layers, visible wear | High — affects coverage type (ACV vs RCV) |
| Foundation | Stone/rubble foundation, visible cracks, settling | Moderate — some carriers exclude foundation |
Knob-and-tube wiring is the single biggest dealbreaker. Many carriers will refuse to insure a home with active knob-and-tube wiring, and those that will often charge a significant premium or limit coverage.
Electrical Systems
Homes built before 1950 may still have knob-and-tube wiring or fuse panels instead of circuit breakers. Even homes from the 1960s and 1970s may have aluminum wiring, which carries its own fire risk. Updating to a modern 200-amp breaker panel with copper wiring is one of the most impactful upgrades you can make — both for safety and insurance costs.
Plumbing
Galvanized steel pipes were common in homes built before 1960. They corrode from the inside over time, eventually causing leaks and water damage. Replacing galvanized pipes with copper or PEX can reduce your insurance premium and prevent costly water claims.
Roof
A roof over 20 years old will almost certainly affect your insurance. Many carriers will only offer actual cash value (ACV) coverage on older roofs instead of replacement cost value (RCV). That means if you have a claim, you'll receive the depreciated value of your roof — not enough to pay for a replacement. A new roof can save 10–25% on your premium and restore full replacement cost coverage.
Foundation
Stone or rubble foundations, common in homes built before 1920, can be expensive to repair and are viewed as higher risk by carriers. If your home has a stone foundation, make sure your policy includes adequate foundation coverage.
How to Get Better Rates on an Older Home
The good news: you don't have to accept sky-high premiums just because your home has some years on it. Here are proven strategies to get better rates:
- Update the big four systems. Electrical, plumbing, roof, and HVAC updates are the fastest way to improve your rates. Document every update with receipts and photos — share these with your agent.
- Get an Ordinance or Law endorsement. This coverage pays for the cost of bringing your home up to current building code after a covered loss. It's inexpensive and essential for older homes.
- Compare carriers aggressively. Some carriers penalize older homes heavily; others are much more flexible. An independent agent can identify which carriers price your specific home most favorably.
- Consider a higher deductible. If your home is well-maintained, a $2,500 deductible can significantly reduce your premium while keeping you protected against major losses.
- Install protective devices. Water leak detectors, monitored fire alarms, and security systems earn discounts and reduce claims risk.
Which Carriers Are Most Flexible With Older Homes?
Not all carriers treat older homes the same way. In our experience representing 22+ carriers:
- Safeco tends to be more flexible with older homes that have been well-maintained and updated.
- Travelers offers strong pricing for older homes with recent roof, electrical, and plumbing updates.
- American Modern specializes in non-standard properties and can often cover homes that other carriers decline.
- Grange has competitive rates for older homes in the western suburbs of Chicago.
The "right" carrier depends entirely on your home's specific characteristics. A carrier that's cheapest for a 1920s bungalow in Wheaton might not be the best choice for a 1960s ranch in Naperville.
Buying an Older Home? Get Insurance Quotes Early
If you're in the process of buying an older home, don't wait until the week before closing to shop for insurance. Start getting quotes as soon as your offer is accepted. This gives you time to identify any issues — like knob-and-tube wiring or an aging roof — that could affect your coverage or require negotiation with the seller.
Get Your Quote
Own an older home and wondering if you're overpaying for insurance? Get a free quote from Better Choice Insurance Group. We compare 22+ carriers to find the ones that price your specific home most competitively. Call (847) 908-5665 or start online today.