Estimating Homeowners Insurance for a New House

Jim Tice
Written on February 25, 2019

Spring is a popular time for people to begin the process of shopping for a new house. The decision of whether or not to move, and what house to choose, is often driven by the cost involved. Of course, the cost of the house is most importan and interest rates are also a major consideration, but the cost of Homeowners insurance has risen dramatically in recent years and is no small factor in a buying decision.

While there are dozens of variables in pricing Homeowners insurance, here are a few you might consider when looking if minimizing your insurance costs is important:

Age

All other factors being equal, a new house will cost less to insure than an older one. All the electrical and heating systems are in great shape, the roof shouldn’t leak, and the overall maintenance is better. All those things contribute to lower claims. This is passed along in the form of a new house discount (which usually applies to houses less than fifteen years old) offered by most insurance companies.

Location

The proximity of a house to fire protection can make a difference. While living in the country has a lot of advantages, if the house is more than 1,000 feet from a fire hydrant and/or more than 5 miles from a responding fire station, you can expect your premiums to be higher.

Construction

It is obvious a brick home is less susceptible to fire damage (and to a certain extent, wind damage). That is reflected in lower premiums. If construction is mixed, two-thirds generally need to be brick for the lower rate to apply.

Claim History

Making a profit in Homeowners insurance has been very difficult for insurance companies in recent years, and as a result, most companies have increased rates for those who have had claims. This is a great reason to carry a deductible as high as your can afford. Keeping your record claim free is a great way to keep the price of your Homeowners insurance as low as possible.

Once you have found your new house, give us a call. We can give you a firm price for insurance that you can use in making your decision!