{"id":30697,"date":"2026-05-19T14:49:23","date_gmt":"2026-05-19T20:49:23","guid":{"rendered":"https:\/\/www.richmondamerican.com\/blog\/?p=30697"},"modified":"2026-05-19T14:51:03","modified_gmt":"2026-05-19T20:51:03","slug":"can-a-new-construction-home-help-you-save-money-on-homeowners-insurance","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/can-a-new-construction-home-help-you-save-money-on-homeowners-insurance\/","title":{"rendered":"Can a New-construction Home Help You Save Money on Homeowners Insurance?"},"content":{"rendered":"\n

When you\u2019re out house hunting, it\u2019s easy to get swept up in the excitement of it all and overlook practical details such as how old the home you\u2019re falling in love with is and what kind of shape it\u2019s in. These things matter in more ways than one. One of the potential hidden costs associated with older, foreclosed or distressed homes may be a higher homeowners insurance premium. As such, going the new-construction route can help you potentially save money on homeowners insurance<\/a>.<\/p>\n\n\n\n

Does your house have a history?<\/h2>\n\n\n\n
\"Young<\/figure>\n\n\n\n

When you buy a resale home, you\u2019re not just getting the layout and finishes. You\u2019re also taking on its history. A past claim won\u2019t automatically raise your premium, but things like water, fire, theft, wind, or liability claims can quite likely catch an underwriter\u2019s attention. Even if everything\u2019s seemingly been fixed, a pattern of claims can signal higher risk, which may lead to higher premiums or stricter coverage terms.<\/p>\n\n\n\n

You can request a C.L.U.E. report (Comprehensive Loss Underwriting Exchange<\/a>) to understand your home\u2019s history, but you can\u2019t rewrite it. A new-construction home<\/a>, meanwhile, is unlikely to have prior claims, which means you may qualify for more competitive pricing and fewer exclusions right from day one. A lower starting premium may keep subsequent renewal increases more modest, helping you save money on homeowners insurance over the long run.<\/p>\n\n\n\n

The buzz on your wiring.<\/h2>\n\n\n\n
\"Loose<\/figure>\n\n\n\n

Older homes weren\u2019t designed for how we use power today. There often aren\u2019t enough outlets or circuits, and even when there are, they weren\u2019t built for modern loads or safety standards.<\/p>\n\n\n\n

That\u2019s more than just an inconvenience. Overloaded systems can become a fire risk, especially if you\u2019re relying on extension cords or power strips to keep everything running. Insurance companies know this, which is why they tend to view modern wiring in new homes that are installed to today\u2019s stricter codes as a safer bet.<\/p>\n\n\n\n

Heating is another hot topic.<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

You might be fine with higher energy bills and extra maintenance, but your insurance agent has to factor in the risks\u2014like older furnaces or boilers that can increase fire or carbon monoxide concerns. New homes are built with safer systems, like sealed combustion furnaces and water heaters that help keep harmful gases out of your living space. Plus, features like smart thermostats<\/a>, automatic shutoffs, and leak detectors are becoming the norm.<\/p>\n\n\n\n

Add in builder and manufacturer warranties<\/a>, and you\u2019ve got extra protection if something goes wrong early on. All of that lowers the chance of claims, and can help you qualify for better rates and policy perks.<\/p>\n\n\n\n

Sorry to be a wet blanket.<\/h2>\n\n\n\n
\"Copper<\/figure>\n\n\n\n

But let\u2019s face it: older plumbing is more prone to failure. Since leaky or burst pipes can cause thousands of dollars in water damage, insurance carriers may charge a higher premium to offset the higher risk. Older plumbing systems may also contain lead-based solder, flux, or pipe. It wasn\u2019t until 1986 that plumbing systems were required to be lead-free, and it wasn\u2019t until 2014 that all faucets and valves that come into contact with drinking water needed to meet a safer, stricter standard.<\/p>\n\n\n\n

The same is true of your roof. If it\u2019s old or in disrepair, expect increased premiums. You may have difficulty finding an insurance carrier who will insure the home at all. New homes often come with a roof warranty, which makes it easier to keep your roof in good condition. New home builders also typically provide many of the items inside the home with applicable warranties, such as the kitchen appliances, air conditioner and furnace.<\/p>\n\n\n\n

Simply irreplaceable?<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

You see charming details like wainscoting, crown molding, leaded glass, solid wood doors. Your insurer sees pricey, hard-to-replace materials and a big restoration bill. Older homes can also come with hidden issues like lead paint, asbestos, or outdated insulation. Beyond the health concerns, those can make repairs more complicated\u2014and claims more expensive.<\/p>\n\n\n\n

Before you fall in love, ask if it\u2019s worth the extra upkeep and potentially higher premiums. The good news: you can often get the same look in a new build, with modern materials that are easier (and cheaper!) to repair or replace.<\/p>\n\n\n\n

Safety first!<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

Certain safety features can help lower your insurance premiums\u2014and new builds often include many of them as standard or add-ons, making it easier to stack discounts:<\/p>\n\n\n\n