Buyers Are Saving on Insurance Costs With New Homes

New-construction homes are now more affordable than homes in the resale market, but the discount extends far past the list price. According to new data from Realtor.com, the average annual home insurance premium for a newly-built home was 35% lower than that for a 20-year-old home in 2025. This discount equates to annual savings of about $1,002.

Climate risk also plays a major role in these savings

Older homes are at greater risk of damage from severe weather, so savings can be even greater in areas with high climate risk. Nationally, approximately 18.3% of homes in the U.S. face severe or extreme risk of hurricane-grade wind damage, and older homes are especially vulnerable.

These savings add up over time

When compared with a 20-year-old existing home, a homeowner of a newly-built home could save $7,300 in insurance costs over the first decade of homeownership, the report shows. However, when combining the insurance costs with reduced maintenance, a new-construction buyer could save up to $32,000 during the first decade of homeownership.