The Situation

A 1940s Craftsman. A Policy Set in 2015. A Lot That Changed in Between.

In the Kennesaw Avenue corridor of Marietta, a family owned a beautifully preserved 1940s craftsman bungalow. Original hardwood floors, plaster walls, custom millwork, a wide covered front porch with turned columns — the kind of home that cannot simply be rebuilt with off-the-shelf materials.

When they purchased the home in 2015, their insurance agent set the dwelling coverage at $480,000 based on a standard replacement cost estimator. The policy renewed automatically every year. No one revisited the number. No one accounted for the fact that historic homes cost significantly more per square foot to rebuild than standard construction — or that material and labor costs had risen sharply since 2015.

The Storm

A Severe Thunderstorm. A 60-Year-Old Oak. A Claim That Should Have Been Simple.

In the spring of 2024, a severe thunderstorm moved through Cobb County with straight-line winds exceeding 65 mph. A large oak tree in the front yard — one that had stood for over 60 years — came down across the front corner of the home, punching through the porch roof, damaging the exterior wall, and cracking the original plaster ceiling in the front parlor.

The contractor estimate for full restoration came in at $38,500. This included matching the original porch columns, replicating the period millwork, replastering the interior ceiling, and repairing the structural wall framing. For a historic home, these are not optional upgrades — they are required to maintain the property's character and value.

The Problem

The Policy Was Set to 2015 Costs. The Claim Was in 2024.

When we reviewed the policy after the claim was filed, the true replacement cost for the home — accounting for its historic character, custom materials, and current Cobb County labor rates — was estimated at $620,000. The dwelling coverage was still at $480,000, representing only 77% of the required insured value.

The carrier applied a coinsurance reduction to the claim payout. The family received less than the full repair cost — and owed the difference out of pocket.

Education

Why Historic Homes Are Almost Always Underinsured

Standard replacement cost estimators are built around modern construction. They do not account for the premium costs associated with historic homes:

• ✔ Custom millwork and period-accurate materials cost 2 to 4 times more than standard materials
• ✔ Plaster walls cannot be replaced with standard drywall in a historic restoration
• ✔ Skilled craftsmen who can replicate original details command premium labor rates
• ✔ Local historic preservation ordinances may require specific materials and methods
• ✔ Building code upgrades triggered by significant damage are rarely covered without Ordinance or Law coverage

What Iron Legacy Did

A Historic Home Assessment — Not Just a Limit Adjustment

We started with a proper historic home replacement cost assessment that accounted for the actual materials and methods required to restore the property to its original character. The updated dwelling coverage was set at $620,000 — reflecting real Cobb County restoration costs in 2024.

We then placed the policy with a carrier that specifically offers historic home coverage, including guaranteed matching materials and Ordinance or Law coverage at 25% of dwelling value.

The family's annual premium increased by $340. Given that the coinsurance shortfall on a single claim was over $8,000, the math was straightforward.

The Outcome

Before and After

Historic Asset Advisory: Marietta & Decatur

"Historic homes are almost universally underinsured because standard tools cannot price the labor of a master craftsman or the scarcity of period-accurate materials. To protect a legacy property, owners should ensure their policy includes Guaranteed Matching and at least 25% Ordinance or Law coverage to manage modern code requirements during restoration."