💡 So what exactly is a “historically designated” home—and why would insurance companies want to avoid insuring them?
🏠A property may be placed on a historic registry—local, state, or federal—based on factors like:
Architectural uniqueness or significance
Connection to a notable person or historical event
Age and original building materials
Location within a designated historic district
In many cities, historic designation is used as a way to preserve architectural integrity and maintain a community’s historical aesthetic. For example, cities like Philadelphia, Boston, and Charleston have entire blocks or neighborhoods under preservation guidelines. Once a home is listed, however, owners must comply with strict rules for any renovations, repairs, or alterations. Everything from the type of windows to the material used in the facade may be regulated.
🛑 That’s where insurance companies hit the brakes.
Tim and Sean explain that when a property is listed on a historic registry, the cost to repair or rebuild it after a loss skyrockets. Insurance carriers understand that:
Builder-grade materials may not be acceptable for repairs
Contractors may need special permits or approvals from preservation boards
Even minor updates might require architectural review and approval
All of these factors mean one thing: claims become more expensive, more time-consuming, and full of red tape.
💬 During the episode, you’ll hear how this affects homeowners, real estate investors, and insurance agents alike:
The typical homeowners insurance application now includes a question: Is the property listed on a historic registry?
Most insurance companies either decline coverage outright or place strict limitations on the policy if the home is listed
Buyers who don’t ask the right questions—or agents who miss the historical designation—may find themselves stuck with underinsured or uninsurable properties
đź“Ť Tim and Sean also dive into the different types of registries:
Local historic registries, which are managed by city planning departments or preservation commissions
State-level registries, which provide broader recognition but may come with fewer restrictions
Federal historic registries (such as the National Register of Historic Places), which carry prestige but also impose the highest level of compliance
This multilayered system can be confusing for buyers and sellers alike, especially when a property is only partially covered—like a historic facade but a modern interior. It also raises key questions:
Should sellers have to disclose these designations more clearly?
Are buyers being given enough information before making major financial decisions?
What strategies can agents use to navigate these situations safely and responsibly?
🔥 This episode is a must-listen if you’re:
A homeowner considering buying or renovating a historic property
A real estate agent or broker trying to guide clients through a tricky sale
An insurance professional looking to understand risk ratings and underwriting red flags
A developer or investor seeking properties with hidden complications
🎧 Bricks and Risk continues to spotlight the conversations that matter—where real estate and insurance intersect. With increasing climate risk, tighter lending requirements, and data-driven platforms like Zillow reshaping buyer behavior, understanding the regulatory and financial complexities behind historic properties is more important than ever.
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