Owners of historic buildings may be unaware of a serious gap in
the insurance policies that are routinely offered for fire, storm,
and other casualty losses upon such properties. Although many
building owners buy insurance coverage linked to the estimated
value of buildings to allow for the repair or replacement of
buildings that might be damaged by fire, storm, or other
casualties, the owners of historic structures, in particular, face
an acute risk of a common insurance policy limitation that can
leave the owners underinsured for the costs of repair should a loss
occur.
Precisely because historic structures are old, these buildings
usually do not meet a variety of laws, ordinances, and building
codes that have been enacted since these buildings' original
construction. Current building regulations often do not require the
modification of pre-existing buildings to meet the newer
requirements. But, if a building owner undertakes a significant
repair or reconstruction
