Can old plumbing raise my homeowners insurance rates?

Because water damage from plumbing is a covered loss, and the insurer is betting on how likely your pipes are to fail. The NAIC says homeowners policies cover damage from a "sudden and accidental" discharge from a plumbing system. An insurer that's going to pay for a burst pipe wants to know how likely that pipe is to burst.

Triple-I points homeowners in the same direction when it lists ways to cut costs. It suggests you "consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage." In other words, the plumbing is part of how the insurer sees the house.

It can show up in a few ways, and each insurer handles it differently.

• A higher premium. The house costs more to insure because the water damage risk is higher.
• No preferred rate. Per the NAIC, older homes "may not qualify for preferred programs," which are usually an insurer's better-priced tiers.
• A condition on coverage. The NAIC says insurers "may require" updated plumbing on older homes. That can mean replacing a material before the policy is written or renewed.
• A declined application. Some insurers won't write a house with certain materials at all.
• A nonrenewal notice. An insurer can decide not to renew based on the home's condition. Arizona law sets rules for this, covered below.

Your insurer's own underwriting rules decide which of these, if any, applies. Ask.

Insurers tend to ask about supply pipe material and the water heater, since those are pressurized and can flood a house.

### Polybutylene

This is the material insurers ask about most. InterNACHI says polybutylene was made "between 1978 and mid-1995," was "installed in up to 10 million homes," and was pulled "after scores of allegations surfaced claiming that polybutylene pipes were rupturing and causing property damage." It warns that "Homeowners might face higher insurance premiums or be denied coverage entirely." Our guide to insuring a home with polybutylene pipes covers what to expect.

### Galvanized steel

Common in older Valley homes, galvanized supply pipe can corrode from the inside over decades, which cuts flow and can lead to leaks. Our page on galvanized pipe problems explains the signs.

### Aging copper with pinhole leaks

Copper lasts, but a house that has had several pinhole leaks may be on its way to more. Repeated leaks can also mean repeated claims. Our guides to pinhole leaks in copper pipes and whether to repair a leak or repipe help you decide.

### Old drain lines and water heaters

Drain lines and water heaters come up too. An old cast iron drain or a water heater well past its expected life can draw questions. Our pages on cast iron drain pipe lifespan and what to know before buying a water heater cover both.

Arizona sets limits on how an insurer can cancel or refuse to renew a homeowners policy. The rules in A.R.S. 20-1651 through 20-1654 apply to policies on homes of up to four units.

Cancellation mid-policy is limited. Under A.R.S. 20-1652, once a policy has been in effect for sixty days, a cancellation has to rest on listed grounds. One is "Failure of the insured to take reasonable steps to eliminate or reduce any conditions in or on the insured premises that contributed to a loss in the past or will increase the probability of future losses."

You get time to fix a condition. The same law says that if nonrenewal "is based on the condition of the premises, the insured shall be given thirty days' notice to remedy the identified conditions. If the identified conditions are remedied, coverage shall be renewed." If the fix isn't done in time, you get "an additional thirty days, on payment of premium, to cure the defective condition." And if you believe the decision is "arbitrary or capricious," the law points to an appeal process.

Nonrenewal needs notice. A.R.S. 20-1654 says an insurer that plans not to renew must send notice "at least thirty days before the end of the policy period."

Inspections count. A.R.S. 20-1652 also says "an insurer may decline or terminate insurance coverage based on the condition of the premises as determined through a physical inspection of the premises." So if an inspector for your insurer notes old or leaking plumbing, it can affect your coverage.

If you get a notice that names your plumbing, act inside that thirty-day window. Get the work done and send the insurer the invoice and permit.

Start with information, then decide what to fix.

### Ask your insurer what matters

Call and ask whether your plumbing affects your rate, and what update would change it. In Arizona, that call is safe: A.R.S. 20-1652 says an insurer "shall not consider as a claim any inquiry by an insured into whether a policy will cover a loss or about the type or level of coverage."

### Update the highest-risk parts first

Replacing polybutylene or failing galvanized supply pipe usually matters most. A water heater past its life is a smaller, cheaper fix. Our guides to whole-house repipe options and questions to ask before hiring someone to repipe help you plan.

### Keep the paperwork

After an update, keep the invoice, permit and final inspection. Send copies to your insurer or agent and ask them to update your file. A plumbing update your insurer doesn't know about can't help your rate.

### Shop and compare

Triple-I's first tip for lowering costs is to "Shop around." Insurers weigh older homes differently, so a house one company rates poorly may get a better offer elsewhere. The NAIC lists your state insurance department among the unbiased sources for comparing prices.

### Look at your deductible

Triple-I says "The higher your deductible, the more money you can save on your premiums," and that raising it to $1,000 "may save as much as 25 percent." That trades a lower premium for more out of pocket when something breaks, which matters more with older plumbing.

### Does filing a plumbing claim raise rates too?

It can, depending on the insurer. A house with repeat water claims can look like a house with a plumbing problem. That's another reason to fix a failing system rather than claim leak after leak. Our guides to whether insurance covers plumbing repairs and filing a water damage claim explain what claims cover.

HQ Plumbing & Air updates older plumbing across the Phoenix area, from polybutylene and galvanized repipes to water heaters and main shutoffs, with permits and paperwork you can hand your insurer. We're licensed and insured, available 24/7, and every job starts with a free estimate and upfront pricing. See our residential plumbing services.

Old plumbing doesn't have to mean a higher premium forever. Updated plumbing, on paper, is what your insurer can price.