If you’re shopping for a new home and considering insurance coverages, you may wonder, “Is homeowner insurance cheaper on new construction?” You may be surprised at the savings you could enjoy by purchasing Florida homeowners insurance for new construction over insuring an older existing home.
Why is Homeowner Insurance Cheaper on New Construction?
Many potential homeowners may be surprised to learn that Florida homeowners insurance for new construction can be substantially more affordable than insuring older, existing homes. Part of the reason is that everything in a newly built home is, well, new!
New materials, components, appliances and the newest and most modern building codes are enforced throughout the construction process. Your newly-built home may even have certain fire-resistant or weather-resistant features to make it more durable and safer.
In addition, though, newly-constructed homes are less prone to the roof claim fraud that is prevalent throughout the state of Florida. For the past few years, contractors have been soliciting consumers who live in older homes, encouraging them to file claims for roof “damage” (which often is the result of general wear and tear, which is not covered by insurance – asking your home insurance provider to repair/replace your roof that has eroded over time would be the equivalent of asking your auto insurance provider to pay for your worn out brakes or tires). These maintenance-related claims (and the lawsuits associated with them) are the main driver behind the skyrocketing premiums many Florida home insurance customers are paying these days. And there’s no end in sight, until and unless there is legislative or regulatory reform. Contractors generally do not target newer homes for their solicitation efforts, so these homes are more likely to have lower rates.
How Much Can I Save?
It’s important to note that the materials used in the construction of your brand-new home can be a factor in receiving even more discounts. For example, if your newly-constructed home has a metal roof or other fire-resistant materials and/or includes a modern fire-suppression system, this can earn you a discount. Other materials that are more durable and fire-resistant may also factor into an increased discount.
Other discounts may be available, too, including:
- Hip Roof
- Fire Alarm: Local or Centrally Monitored
- Burglary Alarm: Local or Centrally Monitored
- Limited Access Community: 3 Entries or Less
- Gated Community: Manned or Passkey Entry
- Water Loss Prevention: home built in the past 3 years, no documentation required
- Accredited Builder: home built in the past 5 years, no documentation required
- Multi-Program Discount
- Military Discount
American Integrity Insurance is committed to providing Florida homeowners with sound, comprehensive insurance coverage and an extraordinary customer experience. We strive to be a valued partner to our policyholders, agents, and community.
We offer traditional and high valued homeowners insurance, condo insurance, renters insurance, and the special coverage required for vacant homes, manufactured homes, and policies designed for those who need less coverage or are renting out their home. We also offer extra protection, including flood insurance, umbrella insurance, golf cart insurance, boat insurance, cyber coverage and identity theft protection as well as equipment breakdown coverage, to help address a broad range of needs facing Florida homeowners today.