Insurance Coverage Issues Affecting Older Homes

Man looking at an older home with a damaged roof 


Did you know that...


If you have an older home, your insurance company may require you to upgrade the plumbing, electrical and/or heating systems in your home prior to providing you with or renewing your home insurance policy.


What's on this page:


Buying an older home


If you are looking to purchase an older home that has galvanized steel plumbing60-amp electrical serviceknob and tube electrical wiring, a wood-burning stove,fuel oil tank or an old roof, be sure to factor the cost of necessary upgrades into your home buying decision, and always get a home inspection done before purchasing. You may need to make upgrades prior to an insurance company providing you with insurance coverage. An insurance agent or broker will be able to advise you on what upgrades may be needed.


Your insurance company's concerns with galvanized steel plumbing








The dangers associated with 60-amp electrical service






The problem with knob and tube wiring


Knob and tube wiring, commonly found in homes prior to the 1950s, consists of parallel hot (black) and neutral (white) wires, separated by knobs (or insulators) and ceramic tubes.


Knob and tube wiring is considered a higher risk than contemporary wiring installations mainly because:


  • There is no ground wire (in contrast to contemporary wiring).
  • The unintentional contact of the hot and neutral wires may potentially cause an electrical fire.  



Note: Some insurers may consider covering homes with wiring issues if they are inspected by the Electrical Safety Authority (ESA) in Ontario and deemed safe. It's best to speak to your insurance agent or broker about your specific situation.


The dangers of aluminum wiring


If your home was built between the mid 1960s and late 1970s it may have aluminum wiring. Aluminum wiring itself is safe if proper connections and terminations were made without damaging the wire, and if any devices used are approved for use with aluminum wiring. However, some homes have aluminum wiring that were not properly installed, leading to safety hazards.


Insurance companies will not provide or renew your insurance coverage if the aluminum wiring is not properly connected. You may be required to work with a certified electrician to check, repair or replace the aluminum wiring. Talk with your insurance company to learn their requirements.


Wood-burning stoves can be a hazard




To reduce potential risk, your insurance company may require that your wood-burning stove be inspected by a certified Wood Energy Technical Training (WETT) technician and certified by the Underwriters' Laboratories of Canada (ULC), Canadian Standard Association (CSA) or Warnock Hersey before agreeing to provide you with home insurance coverage.








Most insurance companies will only insure a fuel oil tank provided it is less than 20–25 years old and has been certified by the Standards Council of Canada (SCC) or the ULC.


If your oil tank is 25 years or older, your insurance company may require that you remove and replace it with a newer tank or change how your home is heated by installing a gas or electrical furnace, prior to providing you with home insurance coverage.


Given the wide range of inspection/upgrade requirements that insurance companies may have, it's always best to speak to your insurance agent or broker about your specific situation.


Old roofs increase your chance of a leak


Roofs typically have a life span of 20 years, so if your roof is older than that, it increases your chance of a leak. With increased waterfall yearly, you may find your roof deteriorating more quickly. Your insurance company may require you to replace your roof prior to providing you with home insurance coverage.


You may be interested in: