Brand New Home vs. Previously Lived-In Home: Is Home Insurance Any Different?

Brand New Home vs. Previously Lived-In Home: Is Home Insurance Any Different?

December 13, 2023

When it comes to buying a home, whether it's brand new or previously lived-in, homeowners insurance is a key component in safeguarding your investment. But a question that often arises is - "Is the homeowners insurance any different if we're buying a brand new home versus a home that's been lived in?"

As a leading insurance provider in Winston, OR, we at Hometown Insurance Center, are here to answer this question and shed light on some key considerations.

Is There a Difference? 

The short answer is yes, there can be differences in homeowners insurance between a brand new home and a previously lived-in one.

Brand New Home

When you purchase a brand new home, the homeowners insurance can often be less expensive. Why? Because new homes are built with the latest materials and adhere to the current building codes, they are considered less risky to insure. Everything from the electrical system to the plumbing is brand new, reducing the chances of a major system failure that could lead to an insurance claim.

For instance, let's consider a brand new home in Winston. This house, built according to the latest building standards, features state-of-the-art systems and appliances. Given its newness, the chances of a system malfunction or a catastrophic failure are significantly lower, which translates into lower insurance premiums.

Previously Lived-In Home

On the other hand, a previously lived-in home, especially an older one, could have higher insurance premiums. Older homes may have outdated wiring, plumbing, or heating systems that can be more likely to cause a fire or water damage. These homes may not meet current building codes and may need substantial upgrades, which can also increase insurance costs.

Considerations for Insuring a Brand New Home

Whether you're considering a brand new home or a previously lived-in one, here are a few factors to keep in mind when it comes to homeowners insurance:

1. Construction Quality: The quality of construction can greatly influence insurance costs. New homes, especially those built by reputable builders, often have high-quality construction that can withstand severe weather and other risks, reducing insurance costs.

2. Location: The location of your home can also affect your insurance premiums. A brand new home in an area prone to natural disasters like floods or wildfires may still have high insurance costs. Conversely, an older home in a safe, low-risk area might have lower insurance costs.

3. Security and Safety Features: New homes often come with advanced safety features like fire suppression systems, burglar alarms, and modern locks, which can lower insurance costs. If you're buying a previously lived-in home, consider installing these features to potentially reduce your insurance premiums.

4. Claims History: Insurers consider the claims history of a property when determining premiums. A previously lived-in home with a history of claims may have higher insurance costs than a brand new home.

Insuring a Brand New Home in Winston, Oregon

While buying a brand new home can often mean lower homeowners insurance premiums, it's not a hard-and-fast rule. Factors like location, construction quality, safety features, and claims history all play a part. At Hometown Insurance Center, we're here to help you navigate these considerations and find a homeowners insurance policy that suits your needs, whether your home is brand new or has stood the test of time in the great state of Oregon.