Buying Older Homes

Buying Older Homes And Insurance

When speaking about insurance companies, the comments below is based on my experience with my customers and many of the brokers in Florida, during my home inspection career. Buying older homes can come with unique insurance considerations and costs. The truth is that anything can be insured if you are willing to pay the price. The comments below are based on getting a reasonably priced insurance policy.

Below you will find an outline of the issues with houses built between certain dates in order to give you a good indication of the issues that each “Era” may have. Based on my experience these lists are correct and only may have changed if a proper remodel has been performed.

We highly recommend that buyers have a full home inspection performed by a qualified, insured and licensed home inspector from the State that the home in located in. If your state does not require licensing for home inspectors, look for an InterNACHI or ASHI certified inspector. These agencies ensure that the certified inspectors keep up with their training.

Buying Homes Older Than 1925

Ok, so you love the mistic of buying a historic home. By historic, I mean a home built prior to 1925. When considering a purchase of a historic home, I always remind people that even thought these houses are gorgeous, they are also a project. A never ending project. There is so much wood on these homes that it’s a continuing battle to keep everything in good condition. With that being said, make sure you are willing to put forth the effort to maintain a home of this type.

Key Issues Include

• Knob-and-tube wiring — Very common; ungrounded, cloth insulation degrades, major fire hazard, and insufficient capacity for modern electrical loads. Full rewire is often needed ($8k–$20k+). In addition, Insurance companies don’t like this type of wiring so it is difficult or expensive to get the home insured with Knob and Tube wiring.
• Foundation problems — Stone, brick, or early concrete foundations commonly crack, settle, or shift. Uneven floors, sticking doors/windows, and water intrusion are frequent. This is very common in historic homes so be aware to expect some out of level floors however they should not be such that your refrigerator keeps rolling into the living room while you are at church.
• Plumbing — Lead supply pipes (health risk), galvanized steel or cast iron (corrodes and leaks), and clay/terra-cotta sewer lines (roots invade and collapse them). Repairs are expensive and disruptive. Again, Insurance companies do no like most of these types of piping, therefor it is difficult or expensive to get insured.
• Balloon framing — Fire can spread rapidly through wall cavities; very difficult and costly to insulate or renovate properly. Unlike new homes which have typical continuous walls that are 8 feet high. Baloon
• No or minimal insulation — Often newspaper, sawdust, or nothing. Single-pane windows and drafty construction lead to very high energy bills.
• Lead paint and early asbestos — Almost certain lead paint; asbestos possible in some early materials.
• Plaster/lath walls — Durable but extremely difficult and expensive to repair when damaged; hides moisture and pest issues.
• In Florida specifically — Long-term termite exposure (pre-modern treatments), cast iron drains failing from the inside, and high humidity accelerating rot if any leaks exist. Pre-modern building codes.

When deciding to purchase a historic home, expect to have added expenses, which sometimes can be large, in addition, expect to have to do additional maintenance due to it’s age.

Buying Homes Built Between 1925 and 1950

This is a transitional period for homes. Many issues overlap with pre-1925 homes, but systems are sometimes partially updated (often poorly).

Key Issues Include

• Electrical — Knob-and-tube still common or only partially replaced with inadequate “upgrades.” Mixed wiring, insufficient amperage, and grounding problems are typical. We see a lot of homes that were upgraded to newer cloth wiring, unfortunately this is a product that Insurance companies do not like.
• Plumbing — Galvanized steel pipes dominate (internal corrosion causes low pressure, rusty water, and leaks after decades). Lead pipes possible early in the period; clay sewers still common. Galvanized piping can be an insurance issue due to it’s age and it being prone to leaks.
• Asbestos — More prevalent starting in the 1930s (insulation, floor tiles, roofing, pipe wrap).
• Lead paint — Still widely used. This can be an issue depending on the type of loan you are getting.
• Foundations — Improving in many areas (more poured concrete), but settling, cracking, and water issues remain common. Pier-and-beam foundations can have deteriorated posts/piers.
• Poor insulation and energy efficiency — Single-pane windows and minimal insulation lead to high utility costs.
• Mixed/“updated” systems — Partial DIY renovations often create hidden problems (e.g., new wiring tied into old circuits). We see this a lot in the home inspection business, where the electrical panels have been upgraded but tied into old wiring, which cannot be seen in the panel.
• In Florida — Termite risk remains high; early (now-banned) chemical treatments were used on some homes. Cast iron drains and humidity-related issues persist.

Buying Homes Build Between 1950 And 1980

Post-war boom era (ranch, split-level, mid-century modern styles). Platform framing is standard, but many material and system problems emerged.

Key Issues Include:

• Aluminum wiring — Common ~1965–1973. Connections loosen over time, causing overheating and fire risk. Requires special connectors or full replacement. This is an issues with most insurance companies. There are acceptable solutions that will meet the NEC (National Electric Code) which most insurance companies will accept. The only problem with this is when you go to sell the home, you have to convince the buyers that it’s ok.
• Asbestos — Very common (vinyl-asbestos tile, insulation, textured ceilings/popcorn ceilings, pipe wrap, heating components).
• Lead paint — Used until the 1978 ban.
• Plumbing — Galvanized steel early in the period (failing); cast iron drains common and corroding. Polybutylene (gray plastic) appears in the late 1970s and is problematic. Galvanized and Polybutylene piping are major insurance issues and will most likely need to be replaced.
• UFFI (urea-formaldehyde foam insulation) — Used in some 1970s homes; can off-gas formaldehyde.
• Foundation issues — Widespread slab-on-grade construction (especially in the South). Plumbing runs under the slab—leaks are expensive to locate and repair. Settling in poor soils is common.
• Energy efficiency — Generally poor insulation and single/early double-pane windows until the mid-1970s energy crisis prompted some improvements. Large windows in mid-century modern homes increase energy loss. Correcting this issue can be expensive, replacing windows, doors and insulation is very important to increasing the energy efficiency of your home.
• Flat or low-pitch roofs — Common on some designs; prone to ponding and leaks.
• In Florida — Slab leaks are a frequent expensive repair. Aluminum wiring is very common in 1960s–1970s homes. Termites remain a major concern. Pre-1992 homes lack modern high-wind reinforcements.

Buying Homes Built Between 1980 And 2002

More modern codes and materials, but specific problematic products and construction practices appeared during the boom years.

Key Issues Include

• Polybutylene (PB) plumbing — Widespread from late 1970s to mid-1990s (gray or bluish-gray plastic pipes). Degrades with chlorine in water; fittings fail, leading to sudden bursts and major water damage. Often requires full repiping. Many insurers are reluctant or refuse coverage.
• Problematic electrical panels — Federal Pacific (FPE) and Zinsco panels (into the 1980s) have breakers that can fail to trip—fire hazard. Replacement is often recommended. Many insurers will refuse coverage for these panels.
• EIFS (synthetic stucco / Exterior Insulation and Finish System) — Popular in the 1980s–1990s. Barrier-type systems (no drainage plane) trap moisture behind the cladding, causing hidden wood rot, mold, and structural damage. Very expensive to remediate, especially in humid climates. Many insurance companies will not cover this product due to the unseen damages.
• Construction quality during boom years — Some 1990s–early 2000s homes had rushed builds with shortcuts (poor flashing, inadequate fastening, low-grade materials) leading to leaks and long-term issues.
• Insulation and windows — Generally better than earlier eras, but many have settled insulation, complex rooflines with gaps, or failed window seals (fogged glass).
• Chinese drywall — Possible in homes built ~2001–2009 (corrosive sulfur compounds damaged wiring and plumbing). The sulfur compound in this type of drywall will cause aluminum and copper to corrode, leading to water leaks, AC issues and electrical issues.
• In Florida — Pre-1992 (and to some extent pre-2002 Florida Building Code) homes often lack modern wind mitigation (hurricane straps, impact windows/doors, fortified roof assemblies). This significantly raises insurance costs or makes coverage harder to obtain. Slab construction + polybutylene or cast iron issues are common. Termite protection is better than earlier eras but still a risk. High insurance premiums are a major ongoing cost factor for older Florida homes.

Buying Homes Built After 2002

Recently the home building industry has improved the quality of products and installation procedures which have mitigated many of the issues noted above. Unfortunately our experience in the home inspection industry is that the quantity of qualified workmen has decreased. Don’t get me wrong, there are some amazing craftsmen in the construction industry, there just are not enough of them for the amount of work that is currently going on as of the date of this writing (Mid 2026).

The industry relies on governmental inspectors but the responsibility to inspect in detail still lies with the Contractor, not the inspector. Most permitting agencies make it clear that they take no responsibility have no liability for anything the builder does. This is the primary reason that a good full home inspection should be performed, even on new homes.

Important General Advice (Especially Relevant in Florida)

• Always get thorough inspections — Standard home inspection + termite/WDO inspection (critical in Florida) + sewer scope camera + electrical/plumbing specialist review if red flags appear. In Florida, also consider a 4-point inspection (for insurance) and wind mitigation inspection.
• Hidden costs add up fast — Rewiring, repiping, foundation repair, asbestos/lead abatement, roof replacement, and HVAC upgrades commonly run into the tens of thousands.
• Insurance realities in Florida — Older homes face much higher premiums. Certain materials (polybutylene, aluminum wiring, knob-and-tube, EIFS, lack of wind mitigation) can make a home difficult or expensive to insure.
• Permits and code upgrades — Major renovations often trigger expensive code upgrades (electrical, plumbing, energy efficiency, wind resistance in Florida).

Bottom line: Pre-1950 homes tend to have more fundamental structural, electrical, and plumbing challenges. 1950–1980 homes often have hazardous materials + specific wiring/plumbing pitfalls. 1980–2002 homes are generally better built but carry risks from specific problematic materials (polybutylene, EIFS) and, in Florida, wind code/insurance issues.