[MassHistPres] Homeowners insurance in Local Historic Districts

[Donna Wiley]

Replacement policies for antique houses are, indeed, expensive, and may
become even more so if the price of lumber continues to rise. However,
replacement is replacement, and every reputable insurance company with
which I've dealt understands replacement to mean "with like material.' It
sounds as though the company in question may be interpreting 'replacement'
to mean 'replace with something that looks like the original material'
(ugh). If not, what difference would it make for the house to be located in
a local historic district?

Donna Wiley
Whately Historical Commission


On Wed, Jun 9, 2021 at 1:18 PM Breger, Benjamin <bregerb at amherstma.gov>
wrote:

> Dear List-serv,
>
> A homeowner in one of Amherst's 2 Local Historic Districts has indicated
> that when they recently changed to a new homeowners insurance company, the
> local agent added a 12.5% premium to the insurance policy due to the home
> being in a local historic district. This is the first instance of this I've
> heard happening in Amherst and I wonder if others have had any similar
> experience. If so, is there anything to be done? Luckily, this homeowner is
> a strong proponent of the historic district designation, as are most of the
> property owners in the districts but I worry that if higher insurance rates
> become the norm, attitudes could change.
>
> The local insurance agent said, "*since the house is part of the historic
> district, repairs would have to be of such a nature that replacement costs
> would be higher, thus the increase in annual fee." *
>
> Curious if this is normal practice for insurance companies and this is
> just the first instance in Amherst or if this is unusual?
>
> Sincerely,
> Ben
>
> *Ben Breger, Planner*
>
> AICP Candidate
>
> Planning Department
>
> Town of Amherst
>
>
> 413-259-3187
>
> bregerb at amherstma.gov
>
>
>
>
>
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