Do Newer Homes Cost Less to Insure? 

Did you know that newer homes cost less to insure?

Home insurance is critical to responsible homeownership, offering financial protection against unexpected damages and disasters.

But did you know that the age of your home can significantly impact your insurance premiums?

Insurance companies typically assess many factors when assessing your risk levels and calculating quotes for appropriate coverage, and newly constructed homes may often garner lower rates for owners.

Is Insurance Cheaper for Newly Constructed Homes?

Insurance rates may often be lower for those seeking coverage for newly constructed homes. Insurance companies may view new homes as less risky because they are built with modern materials and techniques, which are generally less likely to result in claims.

For instance, new homes may be more likely to withstand severe weather conditions, reducing the risk of damage and subsequent insurance claims.

Insurance companies often consider older homes as a higher risk for several reasons. First, they were built according to older building codes and may not be as structurally sound as newer homes.

Secondly, they may have outdated electrical and plumbing systems, increasing the risk of fire or water damage. Furthermore, older homes may require more maintenance and repairs, which can lead to more insurance claims.

For example, an older roof may leak, causing water damage inside the home.

What Features Might Help Newer Homes Be Quoted Lower Rates?

Several features of new homes can contribute to lower insurance rates. These may often include the following:

• Modern construction—New homes are often built with the latest construction standards and materials, typically making them more durable and less likely to suffer damage.

• Updated systems—New homes may be more likely to have modern electrical, heating and plumbing systems, which are generally less likely to malfunction and cause damage.

• Safety features—Modern features like burglar alarms, fire sprinklers and advanced smoke detectors can prevent or reduce damage, leading to fewer or less expensive claims.

• Energy efficiency—New homes are often more energy-efficient, which can lead to discounts from some insurance companies.

We’re Here to Help

With extensive experience serving hundreds of homeowners and families, the dedicated team at Crume-Evans Insurance is ideally positioned to assist you. Our team can help you identify and explore appropriate home insurance options and secure robust coverage at an optimal rate.

Visit our website or call 765-452-5479 to learn more or to begin comparing personalized homeowners insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.