Rebuild cost and market value are different numbers
Market value is land plus house plus location. Replacement cost is labor plus materials to rebuild the house that is there, today, to code. On the lakeshore the lot can be worth more than the house; three blocks inland a plaster-and-slate colonial can cost more to rebuild than it would sell for. The dwelling limit on your policy should track the rebuild figure. If it tracks the sale price, you may be over-insured on a lakefront lot and under-insured on an inland one.
What older construction does to the estimate
Three-coat plaster instead of drywall. Slate or clay tile roofs. Leaded and stained glass. Quarter-sawn oak trim, built-ins, hardwood floors that are original, not engineered. Copper gutters. Masonry chimneys. Every one of these is a line item a modern estimate will miss unless someone asks. Bring photos and a list of what is original. It is the fastest way to get the dwelling limit right.
Endorsements that matter on an older house
Ask about extended or guaranteed replacement cost, which adds a cushion above the dwelling limit if rebuild costs run high. Ask about ordinance or law coverage, which pays the extra cost of bringing an old house up to current code after a covered loss — electrical, plumbing, egress — which is not automatic on every policy. Ask how the policy settles roof claims on slate and tile; some pay replacement cost, some pay a depreciated amount, and the difference on a slate roof is large.
Systems: what the carrier will ask
Expect questions about the age and condition of the roof, wiring (knob-and-tube and certain older panels are a concern), plumbing (galvanized supply lines), and heating. Updates raise eligibility and can lower the premium. If you have done the work, document the year and the contractor.
This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.