Your Dream Historic Home Just Became Someone Else's Investment Property

Pre-1940s Massachusetts homes now require $44,500-$110,000+ in mandatory cash reserves beyond the down payment for critical system repairs (electrical, septic, environmental) before insurance coverage is possible. This structural exclusion is creating a market bifurcation where historic homes are transitioning from accessible fixer-uppers to assets exclusive to high-net-worth cash buyers who can bypass lending and insurance bottlenecks.

First-time buyers dreaming of character homes, DIY renovators planning flips, current historic homeowners facing insurance issues, real estate investors evaluating opportunities, anyone house hunting in Massachusetts neighborhoods with older housing stock.

• •Massachusetts median income $101,341, but need $162,000 to afford median home—before mandatory repairs
• •Knob-and-tube wiring replacement: $12,000-$40,000+, automatic insurance denial without remediation
• •Title 5 septic failure: $25,000-$50,000+ mandatory replacement before closing
• •FAIR Plan new rules (Feb 2025): 90% insurance-to-value requirement, ACV penalties for non-compliance
• •Historic material trap: Slate roofs only get ACV coverage—catastrophic loss pays pennies on dollar
• •HNW buyers access specialized insurance (Chubb Masterpiece) unavailable to general market