Walk down Germantown Avenue and the side streets off it, and you will see why Chestnut Hill is often called one of Philadelphia’s most beautiful neighborhoods. Many of its homes are built from Wissahickon schist, the gray, glittering local stone, with slate roofs, copper gutters, plaster walls, leaded glass and hand-carved woodwork. Some are more than a century old, and much of the neighborhood falls within historic districts.
Those details are what make the houses special. They are also what make insuring them different from insuring a newer home. This explainer covers the ideas Chestnut Hill owners should understand before something goes wrong.
Why market value is the wrong starting point
What a house would sell for and what it would cost to rebuild are two different numbers. Market value includes the land, the location and the neighborhood. Rebuilding cost reflects labor and materials. For a stone house with slate roofing and custom millwork, rebuilding can require specialized masons, roofers and carpenters, and the materials themselves can be hard to source. Your dwelling limit should be based on a careful replacement cost estimate, not a sale price or an online estimate.
Replacement cost versus functional replacement
Some policies pay to rebuild with materials of “like kind and quality.” Others, especially for older homes, may pay based on functional replacement, which means using modern materials that serve the same purpose. Drywall instead of plaster or asphalt shingles instead of slate are typical examples. Neither approach is wrong, but they lead to very different results. Find out which approach your policy uses and whether you have any choice about it.
Ordinance or law coverage
When an older home is badly damaged, building codes in force today may require upgrades the original house never had: new electrical service, sprinklers in some cases, updated stairs or structural changes. Standard homeowners policies often provide only limited coverage for the added cost of meeting current codes. Ordinance or law coverage, available as an endorsement on many policies, can help with those costs up to a set limit.
Historic district review
If a property is designated by the Philadelphia Historical Commission, exterior work may require the commission’s review. After a fire or storm, that review can affect materials, design and timing. Ask your agent how your policy handles the cost of meeting historic requirements and the extra time a rebuild might take, including additional living expenses while you are out of the house.
The parts of an old house that are easy to overlook
- Slate and tile roofs. Check whether your policy treats roof damage at replacement cost or actual cash value.
- Stone walls and terraces. Retaining walls, garden walls and stone outbuildings may fall under other structures coverage, which has its own limit.
- Old plumbing and heating. Boilers, radiators and aging pipes can be sources of water damage. Equipment breakdown and water backup endorsements are worth asking about.
- Trees. Large old trees are common on Chestnut Hill lots. Storm damage to the house is often covered, while removal of fallen trees has limits.
- Art, antiques and heirlooms. These often have special limits on a standard policy and may need to be scheduled separately.
Keep a record of what makes your home unique
Photos and video of each room, close-ups of moldings, mantels, stained glass and stonework, plus any architectural drawings, appraisals or contractor estimates, all help if you ever need to rebuild. Store copies somewhere other than the house.
Where to learn more
The Pennsylvania Insurance Department and the Insurance Information Institute both publish general guidance on homeowners coverage.
Review your coverage with Peak Insurance
Peak Insurance is a neighboring independent agency in Roxborough that works with 60+ carriers, including companies that specialize in older and high-value homes. We can walk through your replacement cost estimate, ordinance or law coverage and historic-home details. Visit our Chestnut Hill insurance page or our home insurance page, call (855) 449-8552, or send us a message.
