What you need to know about insuring a heritage home

Updated: May 7, 2026 by Arshi Hossain 

Insuring a heritage home is typically more complex—and often more expensive—than insuring a standard house. These properties are protected for their historical, architectural, or cultural value. Insurers consider them higher risk due to their age, unique construction, and restrictions on repairs and renovations. 

As a result, heritage home insurance often involves a more detailed application process, higher premiums, and potential coverage limitations that don’t apply to newer constructions. Restoration requirements, specialized materials, and the need for municipal approval after a loss can all affect how these homes are insured. 

This guide covers what qualifies as a heritage home, what to consider before buying one, and the key insurance challenges homeowners should understand when protecting these historic properties. 

What is a heritage home? 

A heritage home is a residential property that has been officially recognized for its historical, architectural, cultural, or community significance. These properties are typically older and may be valuable because they were either built by a notable architect, represent a unique architectural style, or are connected to an important historical event or period. 

To be considered a true heritage property, a home must go through a formal designation process, which will vary based on your municipality. Once officially designated as a heritage property, your home gets legal protection. This means you cannot significantly alter, renovate, or demolish your heritage home without approval from the governing authority. 

For example, the Ontario Heritage Act allows municipalities to decide what properties can be designated heritage homes based on their “cultural heritage value or interest". 

Why is a heritage home harder to insure? 

Like most older homes, heritage homes are more difficult to insure for several reasons. Not only is it harder to find the right coverage that fits your home’s unique profile, that coverage also tends to be more expensive than your standard home insurance policy, says Daniel Mirkovic, president and CEO of Square One. 

“You will likely face a more comprehensive application process when you’re looking to insure an older home,” he says. 

That’s because older homes:  

• Predate modern building codes 
• Tend to have older building systems (i.e., heating/cooling, electrical, and plumbing) 
• Have typically undergone several renovations 
• May face additional conditions when repairing or rebuilding 

“Insurance providers will need to understand the current state of the house to assess risks and determine rates properly,” he adds. “Insuring heritage homes will cost even more because approval is often required when repairing or rebuilding exterior and sometimes interior parts of the house.” 

Many standard home insurance policies are based on replacement cost, which covers the full cost to rebuild your home using materials of similar kind and quality at today’s prices. However, with heritage homes, insurers may limit coverage to actual cash value, which factors in depreciation due to age and wear and tear. Since restoration work must often meet heritage preservation standards, replacement costs for these homes are typically much higher than comparable non-heritage properties. As a result, homeowners may need specialized or enhanced coverage to ensure they’re adequately protected in the event of a loss.

Related: Why your home insurance rate may rise even if you’ve never made a claim 

How does inspecting a heritage home work? 

Because of how complicated heritage homes can be, it’s vital to have a thorough assessment of a heritage property by an inspector who specializes in these types of structures before closing on the home. 

A professional inspection will not only inform you of the risks in the home, but also any upgrades you may want or need to make to get your property insured. 

“There are definitely some things to consider from an insurance standpoint when thinking about buying a heritage property,” says Josh Hansen, sales team leader at Mitch Insurance Brokers. 

You’ll need to know how old the home is, what type of wiring and plumbing it relies on, whether updates have been made for these systems—and whether the home can even be covered by insurance. 

Without this knowledge, your mortgage may even hang in the balance. 

“Most insurance companies will not offer a guaranteed building replacement cost endorsement for homes designated as heritage, which may be a requirement for your mortgage lender,” says Hansen. “Make sure to discuss what’s required for insurance coverage with your lender prior to finalizing the purchase to ensure you’re able to meet all of the conditions of your mortgage.” 

What are potential exclusions in insurance policies for heritage homes? 

Hansen cautions that insuring a heritage home can come with some unique challenges and limitations compared to a newer property. “Depending on the dwelling characteristics of the home, coverage may not be available with a standard insurance company,” he says. 

Common risk factors associated with much older properties include: 

• Age of the home: Some insurers may not cover homes over 100 years old or ones built before a certain year (like 1900, for example). However, there may be exceptions if the home has undergone extensive renovations. 
• Knob and tube wiring: Some companies may refuse to insure homes with knob and tube wiring entirely. Others may have specific rules around the extent of the wiring (no more than 10% can be old wiring, or it must not be present in high-usage areas like a kitchen or laundry room). 
• Plumbing: Insurers may not insure heritage homes with obsolete plumbing materials like cast iron, galvanized steel, or lead. 
• Heating: Lastly, having more than one solid fuel-burning appliance, such as a wood stove, can affect a home's insurability. 

Because of how complex these homes are, it’s likely that only a specialty insurer can cover your heritage home. Policies often have more expensive premiums and certain exclusions to coverage—like overland flooding or other uninsurable perils. 

Hansen recommends speaking with an insurance broker or provider to understand coverage options before closing on the sale of a heritage property. 

“This will help with budgeting for these expenses and cut down on any surprises around obtaining insurance coverage,” he adds. 

Related: Three home insurance endorsements to consider based on where you live 

How to budget for heritage home insurance 

Heritage home insurance is typically more expensive than insurance for a newer home due to the added cost of repair, restoration, and regulatory requirements. Your insurance premiums may be higher based on several factors, including: 

• Heritage designation type (i.e., approval required for external or both external and internal changes/repairs). 
• Age and condition of building systems.
• Previous home insurance claim history. For example, if it has older plumbing and has sustained water damage claims, then it will be more costly and difficult to insure.  

“One way to keep costs down is to secure a home inspection and ensure any deficiencies are addressed,” says Mirkovic. “Then, share this information with your home insurance provider.” 

While no one entertains the idea of buying a heritage home to save money, the costs to purchase, maintain, and insure a historic property can quickly add up—particularly if your mortgage also hinges on having certain insurance endorsements, like the Guaranteed Replacement Cost endorsement. 

To ease the financial burden, various levels of governments offer sales tax rebates for certain costs associated with the upkeep of a heritage home—for example, on the purchase of special building materials, or the services of skilled craftsman for restoration work. 

Certain municipalities can also offer property tax rebates for designated heritage properties. The National Trust of Canada provides a list on its website of potential grants for heritage homes. 

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