Homeowners Insurance on New vs. Old Homes
You’ll pay up to 15% less if the home’s heating, plumbing and wiring systems are less than a decade old.
Construction Materials
Ask insurers which materials are preferred locally. A brick house built in the Midwest, Southeast, Northeast would get a positive rate for its ability to withstand wind. However the same house would be less desirable and cost more to insure on the West Coast, where brick is among the least stable in an earthquake.
Flood Zoning
Check to see if the home is in a zone at risk for flooding, homes in these flood zones require extra insurance adding an average $400 annually, according to the Insurance Information Institute.
Neighborhood
Pay attention to the risk factors in your neighborhood, such as crime rate, homes proximity to the fire department, how far is the nearest fire hydrant and the closest police station. The less risk in the neighborhood the lower the premium.
Past Claims
Check with the past homeowner for a copy of the home’s Comprehensive Loss Underwriting Exchange (CLUE) report, which details the property’s history of insurance claims.
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