Moving into a newly built home is exciting. Everything feels fresh — the roof is flawless, the wiring is up to code, the plumbing hasn’t leaked a drop. For many homeowners, it’s like a clean slate. But when it comes to insurance, new homes come with different rules, discounts, and pitfalls than older properties.
Done right, insuring your new build can save you hundreds of dollars per year and protect you from expensive surprises later. Here’s everything you need to know about home insurance for newly built homes in 2025.
What Makes Insurance for New Homes Different
Why do insurers often treat new construction differently than older homes? The answer comes down to risk and reliability.
Lower Risk of Failure
- New houses are built with modern wiring, plumbing, and roofing.
- There’s no wear-and-tear from decades of use, which means fewer immediate risks.
- Insurers see new homes as less likely to trigger claims in the short term.
Compliance With Modern Building Codes
- A freshly built home must meet the latest safety and energy codes.
- Features like fire-resistant materials, hurricane straps, and energy-efficient systems often come standard.
- This reduces claim risk, especially in disaster-prone states.
Discounts for New Construction
- Many insurers offer “new home discounts” that can lower premiums by 10–30%.
- The idea is simple: less maintenance = fewer claims.
Builder’s Warranties and Materials
- Most new homes come with warranties from the builder that cover defects in construction, fixtures, and materials for the first few years.
- This lowers the insurer’s short-term exposure, which can reduce your rate.
What You Need in Your Policy
Even though your home is new, the risks aren’t zero. Fires, storms, floods, and accidents can happen anytime. Here are the coverage types you’ll want to pay attention to:
| Coverage Type | Why It Matters for New Homes |
|---|---|
| Dwelling Coverage / Structure | Protects the physical home (roof, walls, foundation). New doesn’t mean invincible — natural disasters can strike anytime. |
| Replacement Cost or Guaranteed Replacement Cost | Ensures your insurer pays to rebuild your home at today’s prices, not depreciated values. Construction costs can rise fast after disasters. |
| Builder’s Risk Insurance (if still under construction) | Covers theft of building materials, vandalism, or storm damage during construction. |
| Liability Coverage | Protects you if a visitor, contractor, or delivery person gets injured on your property. |
| Loss of Use / Additional Living Expenses | Pays for hotels, rentals, and meals if your home becomes uninhabitable after a covered loss. |
| Flood / Natural Disaster Riders | New homes aren’t immune to flooding, hurricanes, or earthquakes. These often require separate policies. |
| Discounts & Incentives | Insurers often reward new builds with credits for fire suppression systems, impact-resistant roofing, or energy efficiency upgrades. |
How Much You Might Pay
On average, newly built homes cost 15–30% less to insure than older homes of the same size.
- Nationwide, the average premium for a new build is around $80/month ($950 annually).
- In Florida, homes built after updated building codes (post-2001) often qualify for discounts of 20–30% compared to older houses.
- In Texas, windstorm-resistant construction lowers premiums dramatically in coastal areas.
Ways to save even more:
- Raise your deductible.
- Bundle with auto or umbrella policies.
- Document all safety features (impact windows, smart security, upgraded roofing).
Best Insurance Companies for New Homes in 2025
Here are some insurers and programs that stand out for newly built homes in the U.S.:
Progressive
- Known for competitive pricing on new construction.
- Popular bundling discounts for auto + home.
Security First Insurance (Florida)
- Offers special rates for homes built under Florida’s newer, stricter building codes.
- Discounts tied to roof shape, shutters, and hurricane-resistant upgrades.
National General
- Recognized in some regions for favorable pricing on new builds.
- Often competes well with high-deductible plans.
Travelers, State Farm, USAA
- Consistently rank high for customer satisfaction.
- Many offer new home discounts, especially for homes under 10 years old.
PURE Programs (High-Value Homes)
- Tailored to homes over $1M in value.
- Includes white-glove claims service and broader coverage for luxury properties.
Pitfalls to Avoid With New Home Insurance
Even with discounts, it’s easy to overlook key details. Watch out for:
1. Under-Valuing Custom Features
That quartz countertop, high-end tile, or built-in smart system may not be fully covered if you don’t declare them. Insure your home for what it would cost to rebuild with those features included.
2. Ignoring Exclusions
Standard policies don’t cover:
- Flooding
- Earthquakes
- Sewer backups
These may require separate riders or policies, even in new homes.
3. Coverage Gaps Between Builder’s Risk and Homeowners Insurance
If you move in while construction is still wrapping up, make sure builder’s risk coverage ends when homeowners coverage begins—no gaps.
4. Overlooking Safety Discounts
Impact-resistant windows, sprinkler systems, and upgraded roofing can cut premiums significantly. Don’t assume your insurer automatically knows — ask about credits.
Cost Comparison: New vs. Older Homes
| Factor | New Homes | Older Homes |
|---|---|---|
| Premiums | $80/month average | $110–$140/month average |
| Risk of claims | Lower (modern wiring, plumbing, roofing) | Higher (aging infrastructure, outdated codes) |
| Discounts | New home, safety, energy efficiency | Limited or none |
| Repairs needed | Minimal in early years | More frequent (roof, pipes, HVAC) |
Action Plan for New Homeowners
Here’s what to do first if you’re moving into (or building) a new home:
- Contact insurers early — ideally while construction is underway.
- Document builder warranties and safety features — they may reduce premiums.
- Choose replacement cost coverage over actual cash value.
- Add riders for flood, earthquake, or sewer backup depending on your location.
- Review coverage every few years — as your home ages, risks and rates will change.
Bottom Line
Insuring a newly built home in 2025 often costs less than covering an older property — but that doesn’t mean you should skimp on coverage.
Focus on:
- Getting replacement cost coverage, not just actual cash value.
- Asking about new home discounts and safety credits.
- Avoiding coverage gaps during or right after construction.
- Adding flood or disaster riders if you’re in a high-risk area.
With the right policy, your new home can be as financially secure as it is structurally sound.
FAQs About New Home Insurance
Q: Is insurance cheaper for new homes?
Yes. On average, premiums are 15–30% lower for new homes than for older properties.
Q: Do I still need flood insurance on a new build?
Yes. New construction doesn’t reduce flood risk. Standard homeowners policies exclude flood damage.
Q: What’s builder’s risk insurance, and do I need it?
Builder’s risk covers theft, vandalism, and weather damage during construction. If your home isn’t finished, you’ll need it until homeowners insurance kicks in.
Q: Do builder warranties replace insurance?
No. Warranties cover defects in construction or materials but don’t protect against fire, storms, or liability claims.
Q: What companies offer the best new home insurance?
Progressive, State Farm, Travelers, and USAA are strong options nationwide. In Florida, Security First specializes in new builds. For luxury homes, PURE is excellent.
Q: What’s the average premium for a new home in 2025?
Around $80/month ($950 annually), though rates vary by state, coverage type, and features.
