[MassHistPres] Home insurance on NR listed properties

[Ralph Slate]

When I first bought insurance for my historic house, I had a friend who worked in fire restoration advise me . He explained to me that I needed to insure my house based on its replacement value, not based on its "market" value (I live in Springfield, where houses are priced much lower than the cost of the materials to rebuild them). 


He explained that the issue kicks in with a "partial loss", like a kitchen fire, where the entire house isn't destroyed. If the latter happens, they will pay you the market value of the house, and you can theoretically buy roughly the same house in the same neighborhood.


But if you want your house repaired, even if you get "full replacement" coverage, they will still not pay you the actual cost of reconstructing the historic elements if you are deemed underinsured. They estimate costs based on modern materials - so for example, instead of a solid wood interior door, they will reimburse you for a hollow-core door typically found in new construction.


Instead, I have a policy that is for much higher than the "market value" of my house. I had to have an assessor come out to verify the historic features.


That may be what people are running into when they have losses.


I can understand that an insurance company won't want to pay for the historic elements if people are underinsured that way. There are houses for sale in Springfield for $250k which would cost $1m+ to rebuild. 


However I don't think that insurance companies should be able to just say "sorry, we aren't even going to offer you insurance because your house is historic". Let them price fairly and appropriately. 


Ralph Slate
Springfield, MA


On Thu, 3 Jul, 2025 at 3:22 PM, Richard McGrath <mastermasonmcgrath at gmail.com> wrote:
 

To: ralph slate
Cc: masshistpres at cs.umb.edu
In ludenberg an old blacksmith's home in the NHD was hit by a car in the front of the house. The insurance company submitted a list of contractors to use. The contractor proposed using particle board and vinyl siding to repair the historic structure. The owner, not wanting a cheaper product than what she had, complained that she wanted it put back the way it was. The insurance company argued against that. She
continued to complain and the chairman of the architectural preservation district commission, which the home is also part of, lwrote a letter to the insurance company stating that it needed to be put back the way it was. The insurance company complied and promptly canceled her insurance. 


Richard McGrath
Member, Lunenburg APDC








































































































On Thu, Jul 3, 2025, 10:07 AM Ralph Slate via MassHistPres <masshistpres at cs.umb.edu<mailto:masshistpres at cs.umb.edu>> wrote:


Has anyone approached a state legislator about this issue? Property insurance is regulated by the state, so the legislature could pass a law stating that historic status can not be used to disqualify properties. 

Ralph Slate
Springfield, MA


On 6/30/2025 10:06 AM, Steinitz, Michael @ SEC via MassHistPres wrote:



Every week or so we are contacted by another historic homeowner who has gotten a notice of cancellation from their insurer.  Some insurers appear to  have discovered the MACRIS database, and seem to be dropping policies if they find a record there, regardless of whether or not there is a National  Register designation.  So in addition  to the memo on National Register properties, MHC has also prepared the attached memo regarding properties in the statewide Inventory in relation to insurance to help those property owners in responding to their insurer’s concerns.   Again, this is a national issue, exacerbated by a very challenging property insurance environment, with historic properties in general already being considered less desirable to insure, and insurers looking for any ways to reduce their exposure to perceived  risk.
 
Michael
 
Michael Steinitz
Deputy State Historic Preservation Officer
Director, Preservation Planning Division
Massachusetts Historical Commission
220 Morrissey Blvd<https://www.google.com/maps/search/220%0D%0A++++++++++++Morrissey+Blvd+%0D%0A+++++++++Boston%0D%0A++++++++++++MA+02125?entry=gmail&source=g><https://www.google.com/maps/search/220%0D%0A++++++++++++Morrissey+Blvd+%0D%0A+++++++++Boston%0D%0A++++++++++++MA+02125?entry=gmail&source=g>
Boston MA 02125<https://www.google.com/maps/search/220%0D%0A++++++++++++Morrissey+Blvd+%0D%0A+++++++++Boston%0D%0A++++++++++++MA+02125?entry=gmail&source=g>
617-727-8470
617-727-5128 (fax)
<mailto:michael.steinitz at sec.state.ma.us>michael.steinitz at sec.state.ma.us<mailto:michael.steinitz at sec.state.ma.us>
 


From: MassHistPres <masshistpres-bounces at cs.umb.edu><mailto:masshistpres-bounces at cs.umb.edu> On Behalf Of Haley, Ben @ SEC via MassHistPres
Sent: Monday, June 30, 2025 9:13 AM
To: masshistpres at cs.umb.edu<mailto:masshistpres at cs.umb.edu>
Subject: Re: [MassHistPres] Home insurance on NR listed properties
 
This is an issue occurring across the country with increasing frequency. A couple of years ago the MHC developed the attached memorandum to provide to property owners and/or insurance companies. The National Trust hosted a webinar on the subject in 2024 (see <https://urldefense.com/v3/__https:/savingplaces.org/stories/insuring-historic-properties-qa__;!!O9h35Ks8fCsF!GuxRb8N9Zr_j_UEuMwZfIz-Y4i93B3Em9tGTC-HKfaXpA9E9bp3_fZsvPoHKz6mVBu3vhpALEOUFi3AG0q3mpt9M-7Y3jJ2ODiYx9g$>https://savingplaces.org/stories/insuring-historic-properties-qa).
 

Ben Haley
National Register Director
Massachusetts Historical Commission
220 Morrissey Blvd.<https://www.google.com/maps/search/220%0D%0A++++++++++++++Morrissey+Blvd.+%0D%0A+++++++++++Boston,%0D%0A++++++++++++++MA+02125?entry=gmail&source=g><https://www.google.com/maps/search/220%0D%0A++++++++++++++Morrissey+Blvd.+%0D%0A+++++++++++Boston,%0D%0A++++++++++++++MA+02125?entry=gmail&source=g>
Boston, MA 02125<https://www.google.com/maps/search/220%0D%0A++++++++++++++Morrissey+Blvd.+%0D%0A+++++++++++Boston,%0D%0A++++++++++++++MA+02125?entry=gmail&source=g>
Ph: 617-727-8470
Fax: 617-727-5128
<http://www.sec.state.ma.us/mhc>www.sec.state.ma.us/mhc
<mailto:ben.haley at sec.state.ma.us>ben.haley at sec.state.ma.us<mailto:ben.haley at sec.state.ma.us> 
 
Please be advised that the Massachusetts Secretary of State considers e-mail to be a public record, and therefore subject to public access under the Massachusetts Public Records Law,M.G.L. c. 66 § 10.
 


From: MassHistPres <<mailto:masshistpres-bounces at cs.umb.edu>masshistpres-bounces at cs.umb.edu<mailto:masshistpres-bounces at cs.umb.edu>> On Behalf Of Johnstone, Michelle via MassHistPres
Sent: Friday, June 27, 2025 2:18 PM
To: <mailto:MassHistPres at cs.umb.edu>MassHistPres at cs.umb.edu<mailto:MassHistPres at cs.umb.edu>
Subject: [MassHistPres] Home insurance on NR listed properties
 
Happy Friday, Preservationists 😊
 
Here in Worcester, we have been noticing an uptick in complaints from owners (particularly new buyers) of NR-listed buildings related to their inability, in some cases, to find an insurance company to cover them at all, and in other cases, rates being exorbitantly expensive (like in the $400/MONTH range). Is this something that a lot of you are seeing in your communities as well? I’m not sure what it is about National Register listing that has become their sticking point, because the NR is an honorary program only under most circumstances.
 
Does anyone know of any insurers that regularly provide insurance regardless of NR listing, and at a reasonable price? Also interested in if anything is being doing to address this issue.
 
Best,
 
Michelle H. Johnstone 
Senior Preservation Planner
Executive Office of Economic Development | Planning & Regulatory Services Division
City of Worcester | 455 Main Street, Rm 404, Worcester, MA 01608
P: 508-799-1400 x31410
C: 774-622-0695
E: <mailto:johnstonem at worcesterma.gov>johnstonem at worcesterma.gov<mailto:johnstonem at worcesterma.gov>
<https://urldefense.com/v3/__http:/www.worcesterma.gov/__;!!O9h35Ks8fCsF!BTD_4i2UwH8wqiZ2PYbjUOIcaP5n1gjqo7XnErlfUT9jgJgnE1n3niOwsivRYvS-VUfuJCLuff3BNdAqUqxeu1OkP5_xM6Pc$>www.worcesterma.gov
 
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