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Homeowners Insurance on older home?

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I am currently buying a 1950's home in the loop... and while getting everything setup for my lender, I was shocked to find out from my insurance agent (who I've been with forever) that they will not insure the property because "more than 50% of the walls are wood instead of brick/masonry/vinyl siding". Have you ever heard of this before? Anyone have recommendations on who I should contact that a wooden house won't be a problem? Surely people in West U, South Braeswood, Heights, Montrose, etc. find insurance.

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