Insurance - Perils of Landmarking
One issue that has not been given much attention is homeowner's insurance. We've done some initial checking, and it looks like if you are in a landmark district, it is extremely expensive to insure your home for replication purposes.
Normally, if the roof falls in, or you have a kitchen fire and need to re-build, the insurance company assesses what it would cost to repair with modern-day materials, and that is the sum of your reimbursement.
But, if you are landmarked, that won't be good enough; you are not allowed to rebuild with modern-day materials; you have to essentially replicate what was previously there, with historical materials, to historical standards, etc.
Since the replication costs are outside normal insurance costs, what you have to do is massively over-insure your house to hope that the $$$ will be there. Neither Allstate nor State Farm offer policies for replication costs.
No matter what, you are looking at a jump in premiums. Yet another hidden cost of landmarking that no-one wants to talk about.
posted by The Grants @ 7:34 AM
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