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Building Blocks of Savings:  HomeOwners Insurance in New Vs. Resale Homes

Building Blocks of Savings: HomeOwners Insurance in New Vs. Resale Homes

Let's unlock the secrets of homeowners insurance, a crucial piece in the homebuying puzzle! While not mandatory for every homeowner, securing homeowners insurance becomes a necessity when seeking financing from a lender. Homeowners insurance is a crucial investment, serving as a safety net against unforeseen damages to your property. Typically integrated into your monthly payments, any adjustments in premiums can significantly impact your current and future expenses. When considering buying a resale versus a new home, it's vital to weigh the financial implications, including the impact on your insurance costs. Opting for a new home often translates to substantial savings in homeowners insurance premiums. What's the secret behind this? Keep reading to explore the factors contributing to lower insurance costs on new homes compared to resale homes. 

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Understanding homeowners insurance 

Homeowners insurance is a necessary safeguard, offering peace of mind and protection against life's uncertainties. The primary components of homeowners insurance include coverage of your home, property, personal belongings, and other assets in your home. It could also cover living expenses if a covered loss forces you out of your home while it is being repaired. As homes age, insurance premiums typically increase due to several factors.  

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Insurance companies evaluate risk to determine your premium and view new homes as a lower risk level due to fewer concerns about potential claims. Factors such as the age and condition of a home can contribute to increases in homeowners insurance premiums. Newly constructed homes are less prone to structural and internal issues that could lead to claims, while resale or existing homes could have underlying issues that pose a potential threat. 


Why new construction homes may have lower premiums 

Insurance premiums can be categorized based on factors including the age and condition of the home, construction quality, and warranty coverage. Insurance providers will typically associate a lower risk with newly constructed homes that are compliant with the latest building codes and standards, making them less susceptible to structural damage or faulty wiring. Builders, such as Fischer Homes, offer warranty coverage, also reducing insurance costs. When choosing Fischer Homes as your builder, you are guaranteeing a new home, quality of construction and warranty coverage, which can all positively impact your insurance rates.

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Challenges for resale homes

Conversely, when buying a resale home, buyers often see higher premiums in their homeowners insurance, primarily influenced by factors like the home's age and overall condition. Although there are avenues to potentially reduce homeowners insurance premiums, they typically entail home improvements and updates aimed at mitigating risk factors, so insurance companies perceive your home as having a lower risk level. 



How much will you save? 

On average, the cost of homeowners insurance for a home just a decade old can exceed double that of a new construction home. In most cases, as the age of the home increases, so does your insurance premium. Because insurance premiums are typically incorporated into your monthly payments, opting for a new build can translate to significant monthly savings. The benefits extend beyond just immediate cost savings, as you can save money down the road as well. Insurance companies perceive new homes as less risky to insure because there is a smaller chance something will happen to your home and need to be replaced. Buying a new home lowers your own personal risk of unexpected costs as well, such as replacing a water heater, window, or appliance that your insurance provider may not cover. 


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Thinking about building your new home? We offer countless designs to help you build your dream home. Fischer Homes currently builds in Atlanta, Cincinnati, Columbus, Dayton, Indianapolis, Louisville, Northern Kentucky, Northwest Florida, and St. Louis. Click here to see all of our available floorplan collections, take a virtual tour, or give us a call at (855) 342-2281 to schedule an in-person tour and start getting inspiration for your next home!

Stay tuned for more lifestyle content from Fischer Homes. Remember that throughout our journey as your builder, we want to ensure that your experience doesn’t end when you move into your new home. Fischer Homes is forever focused on continuing to go Beyond The Build by continuing to build the best customer experience possible.



Fischer Homes is forever focused on continuing to go Beyond the Build, by continuing to build the best customer experience possible.

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