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Last summer, HSI began to receive calls and emails from owners of historic houses. Their insurance agents were telling them they couldn’t get their property insurance renewed because they display an HSI house plaque. Some of the owners who reached out to us had a house in an historic district, but some did not.
Our research into this issue found that, when agents were doing online property research for a policy, they would see an image of the house in Google Maps with an HSI historic house plaque and then find additional information in the Massachusetts Cultural Resource Information System (MACRIS), which is available online. Much of the MACRIS aggregated historical survey data was created by Massachusetts communities and submitted to the Massachusetts Historical Commission for archiving. It’s a valuable resource for understanding the history of historic properties in the Commonwealth, including those on the National Register of Historic Places. We had never heard of historic markers on a house being a cause for trouble getting insurance so in late August (before Hurricanes Helene and Milton), we reached out to veteran Salem insurance agent Paul Soucy of Soucy Insurance to find out what might be behind this. Q: Paul, Owners of historic houses in Salem have been reaching out to us recently having been told by their insurance agent that they can’t get their property insurance renewed because they have an HSI house plaque displayed. What’s happening? A: That’s a great question. Insurance companies often equate the presence of an historic plaque with restrictions on repairs and/or reconstruction imposed by an historical commission. If a home is on the National Register, there are guidelines that dictate the repair process, and these guidelines will likely increase the cost of repairs. However, the presence of a plaque from HSI should not present a problem for underwriters. The same reasoning should apply to a home that is listed on the MACRIS website as these designations don’t usually come with restrictions on reconstruction. While historic homes are one of Salem’s greatest treasures, they also present a unique challenge to insurers. Since it is difficult to assess the actual replacement cost of historical homes due to their unique construction, insurance companies face uncertainty regarding the ultimate cost of repairs. Generally, repair costs for older homes will be higher than repair costs of newer homes. Also, historic homes may have lead paint, asbestos insulation, knob and tube wiring, older plumbing and heating elements, slate roofs, etc. Removing or replacing these dated items all add to increased claims costs. Q: Why is this suddenly becoming an issue now? A: Insurance companies have experienced poor underwriting performance over the past few years. The increase in claims has been driven by inflation and increasingly severe weather events countrywide. As a result, underwriters are becoming much more cautious about the homes they insure. To that end, insurance underwriters are using new technology to learn more about their exposure. An aerial view showing an HSI plaque is often the first clue of the historic nature of a home. Now, MACRIS mapping is also available online and insurers are using that information as well. If a homeowner gets pushback from the insurance company, he should have a conversation with his agent. Not all insurance companies will have the same restrictions. Options are available. Q: Paul, Salem is an old city with over 4,000 historic properties, and HSI advocates for all of them. Over time, HSI has found that well cared for historic houses maintain their value, even in real estate market downturns. We know, however, that we’re also a coastal community. Fortunately, we haven’t experienced the dramatic damaging weather and flooding events that other communities in Florida, Georgia, the Carolinas, and Texas have had. But have those losses impacted what we can expect in premiums for property coverage here? A: Unfortunately, yes. This is the reality we all live in right now. Insurance companies purchase “reinsurance,” that is, insurance to cover their own losses. Reinsurance carriers have dramatically increased rates over the past few years, (think of wildfires in Maui, hurricanes in Florida, and active tornado seasons), and they pass this loss along to insurance companies through increased premiums. Unfortunately, these costs ultimately get passed down to the consumer. One way insurance companies manage their reinsurance costs is to avoid writing homes near the coast. For some carriers a “coastal” location may mean property within 2 miles of the coast!! Regarding the future, we should see rate increases abate next year, but that is dependent upon lower inflation and fewer catastrophic events. With rising sea levels, Salem is becoming more at risk of flooding. The customary solution to flood insurance has been to purchase flood coverage from the Federal government through the National Flood Insurance Program (NFIP). Not surprisingly, rates have increased substantially due to large losses and lack of governmental subsidies. Homeowners can also obtain quotes from one of the many “private” flood insurers that have taken over much of the flood insurance market. Q: Other than the risk of flood/hurricane, what other factors are impacting insurance coverage and rates for historic property owners in Salem? A: The main thing here is to maintain your home. Poor claims history will have a negative impact on insurance availability and cost. A well maintained roof, clear gutters, adequate insulation, updated plumbing, heating, and wiring are all a critical part of underwriting a historic home. Also, consider installation of a central station burglar, fire, and water sensor system. Not only will these measures prevent future losses, they will also likely lower your insurance costs. Q: Paul, There are houses in Salem for each of the four centuries of our city. Have you found that the property insurance premiums for houses in our historic districts have been generally more expensive? A. The insurance isn’t necessarily more expensive, but the cost of home insurance will be affected by the amount of insurance carried. As I mentioned, older homes are significantly more expensive to repair. Also, the cost of insurance will be affected by the amount and extent of updates to the property such as roof, wiring, plumbing, heating, etc. Q: Paul, How can a homeowner respond to an agent’s raising the issue of an HSI house plaque being displayed or being in an historic district? A. Have a conversation with your agent. Most likely, your agent will have an alternative for you. Q: Paul, An agent should shop around for the best price/value insurance for their customer, but it seems that insurance companies are making it more difficult for everyone by either raising rates or not writing policies. What can the consumer do? At the current rate, the long-term outlook is dire for those who own an historic property in Salem. A. I don’t think the situation is necessarily “dire.” Yes, rates are increasing for everyone, not just owners of historic homes, and yes, many carriers are either exiting the home insurance market in Massachusetts or imposing more restrictions on underwriting, but insurance will be available for a well maintained and updated historic home. Thanks, Paul, for your insights on insurance for historic properties!   Updated: February 2025
Updated February 2024 Background Pioneer Village is an open-air museum re-creating 17th-century life that was established with private funding in time to commemorate the Massachusetts Tercentenary in 1930. In 2021, the City of Salem first publicly proposed moving most of the Village from its original location in Forest River Park in South Salem to the site of Camp Naumkeag, a former tuberculosis outdoor camp created in 1910 in the Salem Willows area. Following advocacy by the Salem Historical Commission (SHC) and Historic Salem, Inc. (HSI), the following have been achieved:
The full history of Historic Salem’s engagement with this project is available here. www.historicsalem.org/pioneer_village.html Historic Salem Inc. Position and Outstanding Questions Summary Both Pioneer Village and Camp Naumkeag are significant Salem historical and cultural resources as evidenced by the Form As prepared by The Public Archeology Laboratory, Inc. (PAL) and are likely eligible for placement on the National Register of Historic Places. As such, HSI advocates for their protection, maintenance, and interpretation to the greatest extent possible and to the highest level of preservation practice. Ideally, Pioneer Village and Camp Naumkeag would be preserved in their current locations. At this point, the properties have either failed (Camp Naumkeag) or are at risk of failing (Pioneer Village) due to a combination of a lack of maintenance and/or flood risks. While significant intervention is warranted, and moving of historic structures could be an effective strategy under the right conditions, history has also proven that a commitment to maintenance and support is critical. Consequently, although moving Pioneer Village might be one solution to the threat of climate change, it is not clear what other alternatives were considered, and in any event, would be an exercise in futility unless the City of Salem commits to its future with an adequate budget for its maintenance, staffing and promotion before any move were made. Background We recognize that the buildings at Pioneer Village are at risk in their present coast-line site due to impacts from forecasted climate changes resulting in sea level rise and as reflected in current FEMA flood maps. As a result, some significant intervention is required to preserve them into the future. We note that the Massachusetts Historical Commission has opined that Pioneer Village is eligible for the National Register “under Criterion A at the state and local levels, and under Criterion C at the local level, and that it meets Criteria Consideration F.” (Letter from MHC to the SHC, April 28, 2023.) Criterion A includes association with an event; Criterion C includes properties significant as representative of culture or technology, and Criterion F includes commemorative properties. The Salem Historic Commission has concurred with the finding of eligibility. While HSI understands that some preservation advocates believe that the significance of Pioneer Village is as a cultural landscape, we note that MHC further adds: “The overall landscape is deteriorated and overgrown, and with the introduction of [nearby] modern elements, the integrity of the overall setting, feeling, and design is compromised,” and that other preservation advocates concur with MHC’s opinions as to its significance. We note that the public discussions on this important project have been limited to SHC meetings and primarily focused on the Demolition Delay for Camp Naumkeag. Outstanding QuestionsSome questions continue to be unanswered. While the potential move of Pioneer Village to the Camp Naumkeag site is the most studied option by the City of Salem, the significant questions that remain are:
“The Section of the Report titled “Operating Budget – Staffing” (page 40) includes the following statement: “Site Maintenance and supplies, utilities, marketing and public outreach and reinvestment in the site would be funded through City of Salem departmental budgets.” This is very concerning as it indicates that if the Pioneer Village buildings were to be relocated to the Naumkeag site, there would be no detailed multi-year funding plan to maintain the buildings, instead funding would rely nebulously on “departmental budgets.” Similarly, if Pioneer Village were to remain in place, there would need to be a detailed operating and capital funding commitment from the City to maintain and interpret the site.” HSI continues to maintain that any plan for Pioneer Village should be clear about project costs and funding and should also commit to dedicated funding for the preservation, maintenance, and interpretation of the Village. We also encourage the City of Salem to hold a public forum where the public can be fully informed about the project. We understand that such a forum may take place early in 2024 and hope that our outstanding questions can be addressed then if not before. ### (1) The Memorandum to the Salem Historic Commission from Oudens Ello Architecture addresses the applicability of the NPS Guidelines to the proposed move, but not to on-site solutions.  The following letter was submitted to the Zoning Board of Appeals prior to their October 18, 2023 meeting. You can find additional meeting materials, comments, and letters here: https://tinyurl.com/SalemZBA Under 2023 Meetings and 10-18-2023 Meeting  April 11, 2023
Ms. Grace Napolitano Salem Redevelopment Authority 98 Washington Street Salem, MA 01970 Re: 301 Essex Street Dear Ms. Napolitano, Historic Salem has been following this project consistently since summer 2022. HSI has been reviewing the project according to the principles for design in the SRA guidelines, including: “The design criteria are sympathetic to and conducive of the preservation and enhancement of historic and architectural values and to the construction of new buildings and facilities compatible with the preservation and enhancement of such values.” As you review 301 Essex Street for schematic design approval, we note that during previous reviews, in several cases when this project was presented, there were significant differences between iterations, making it difficult to incrementally develop a design appropriate for this highly visible location. In the case of the design that you are asked to approve at this meeting, the submitted colors of the materials were seen only once by the DRB. At that time, we expressed our dismay with this abrupt color change and stated that we would strongly support a traditional red brick choice, which has been fairly consistently shown throughout the review process. Many members of the public who wrote and spoke also requested that the brick color be something that resembled the existing brick found on the existing building and seen on the adjacent 1834 Salem Inn building as well as many nearby buildings. The gray/black bricks create an addition that looms atop a small historic building, with no connection between the two, making the new addition visually overwhelming. It is also jarring against the context of the Salem Inn, other nearby downtown Salem buildings, and the historic residential neighborhood across the street. There are specific parts of the proposal that we appreciate, including the design of the façade of the Essex Street elevation and the way it turned the corner onto Summer Street. However, in this current proposal, some of the articulated elegance has been removed with the simplification (removal) of the window mullions and the loss of the solid corner column. We encourage you to review the January 2023 proposal to see what was changed. And, again, to refer to the SRA’s own design guidelines. On the Summer Street façade, we find the columns and heavy cornice that emphasize the garage opening unnecessary. The DRB members were also puzzled by the heavy cornice and included it as a piece that needs further review in final design. We believe that a more simplified Summer Street façade would showcase the Essex Street façade and provide a visual transition to the residential McIntire District. We now ask that the SRA either (1) refer the project back to the DRB with specific recommendations, or (2) if schematic design is approved, that approval be conditioned on: including more traditional-colored brick on the Summer Street façade, refinement of the Essex Street façade, and modifications to the upper cornice and columns on the Summer Street façade. We believe that these conditions would be in keeping with the DRB’s recommendations to the SRA. Thank you for considering our comments and for ensuring a thorough and rigorous review of this addition to Salem’s historic downtown. Respectfully, Emily Udy Senior Preservation Advocacy Advisor |
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Historic Salem, Inc. | 9 North Street, Salem, MA 01970 | (978) 745-0799 | [email protected]
Founded in 1944, Historic Salem Inc. is dedicated to the preservation of historic buildings and sites. Copyright 2025 Historic Salem, Inc. - All Rights Reserved
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