Does insurance on a newly built home cost more than it does on an older home?

Why would the insurance on our newly purchased home built in 1930 cost more than our prior home built in 2015? The older home is on 14 acres with a pond, and while it is older, it has been beautifully maintained. Our prior home was on a small lot but was updated with the latest fixtures and materials. Shouldn't our last house cost more?

“There can be a big difference in the cost of insurance between an older home and a new home. In many cases, the older house will cost more to insure due to the higher replacement cost.
Does your new, older home have most of its original:
  • woodwork
  • stained glass windows
  • detailed trim and molding
If so, these charming features are near impossible to replace. The cost of using similar materials can make the premium much higher than the readily available construction materials for a newly built home.
The risk of an older home is much higher as well. It may have outdated plumbing and electrical or any work done to update the home may not have been done by a professional.
Older homes have a statically higher risk of catching fire. Since you mentioned a pond near buy, is this the only local water source to extinguish a potential fire? If you are in a more remote area and a fire station is more than five miles away, this hazard will be reflected in the premium.
Any time you have life changes, it is a great time to re-shop both your home and auto insurance policies.
Using the free Jerry app will help make this happen! Jerry collects auto and home quotes from over 50 carriers and brings the lowest available rates right to your phone.”
Shannon Martin
Answered on Jul 27, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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