Is home insurance cheaper for newer homes?

"I’m in the market for a house, but I don’t know whether to go with an older place or a newer place. Would I pay lower insurance rates if I buy a newer home?


“Insurance can be lower for newer homes because all of the utilities in the home are new (the furnace, plumbing, roof, etc.). Plus, most insurance companies give a new construction discount. Companies like to insure new homes because they are typically lower-risk.
However, older homes can get credits or savings for new or replaced parts. When buying a home, it is important to find out when the roof was last replaced, how old the furnace is, and if the electric system is up to code. Try to stay away from older electric systems in homes, because they can be expensive to replace and hard to insure.
So to sum things up, the insurance on newer homes can be cheaper, but if you know when everything was last replaced, you can get savings off your insurance if you decide to go with an older home. “
Savannah Grabek
Answered on Apr 09, 2021
Savannah Grabek is an expert in Personal Lines insurance. She has 5 years experience in the insurance industry. Savannah began her carrier working with just property insurance and is now tenured in all personal line including home, auto, motorcycle, boat and umbrella. She previously worked for GEICO and has now been working with Jerry insurance for the past year. Savannah lives in New York with her son, fiancé, and puppy Bear. In her free time she enjoys spending quality time with her family and hiking with her dog.

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