Discounts for Newly Constructed Homes

Just like any other existing house, a newly constructed home needs home insurance. However, home insurance companies typically like newly-built homes and they often provide discounts and lower rated for new construction home insurance.

What do new homeowners insurance policies cover?

Home insurance on new construction depends on the phase the new home is in. If the home is under construction, builders risk or course of construction insurance protects the building site, materials and work in progress against the same perils a standard home policy would include. Coverage includes:

  • Dwellings and structures
  • Building materials and supplies
  • Machinery and equipment

Once the home is completed, standard home insurance applies. However, home insurance on a new build (typically two years or less) can be cheaper if you take advantage of carrier discounts for new construction.

How much is homeowners insurance on a new home?

To find out how much you can expect to pay for coverage, you can get a new home insurance quote from several carriers to compare or estimate based on averages.

New home construction insurance or builder’s risk insurance

It is specifically designed to cover homes while they are under construction, typically covers theft and vandalism of the tools and equipment being used to build the house and materials, including in some cases materials being held off-site for future use. This insurance doesn’t provide liability coverage or any protection for the home’s contents since there typically won’t be any personal possessions at the construction site.

New home insurance

Once the build is complete or you’re buying a property from a builder’s inventory, you’ll need a homeowners insurance policy in place at the time that you take possession of the home.

Make sure to have home insurance lined up before closing on the new home; premiums can vary from company to company. You may own the property, but you’ve contracted with a general contractor to complete the project from start to finish. They will be responsible for delivering a completed home, and the general contractor would be liable for buying a builder’s risk policy.

Whether it’s an older home or a new home, you may want to consider umbrella insurance. An umbrella policy is a liability insurance policy that protects you and your assets from larger lawsuit judgments against you. Umbrella insurance benefits include protection against significant property damage, serious bodily injury liability, landlord liability, libel or slander or malicious prosecution.

Discounts for newly constructed homes

You can often save between 20% and 25% on homeowners insurance for insuring a newly-constructed home. Those discounts dissipate over the years, but they can save you money right away.

The building materials used for your newly-constructed home play a role in the discounts and savings. Homes with metal roofs, fire-resistant materials and fire-suppression systems can lead to savings on insurance. Specifically, tile, slate, concrete, metal and even architectural shingles can result in discounts because of quality, durability and fire-resistance factors. Moreover, new homes usually have some discounts or lower pricing on insurance because you have new plumbing and electrical.

Discounts differ by insurer. Some companies offer “home buyer discount” that reduces premiums for up to five years for customers who purchase a newly-built home. The discount amount varies depending on the home and its location.

Most new homes are constructed with protective devices, such as deadbolt locks, sprinkler systems or other burglary and fire alarm systems, Therefore, most insurance companies also provide a protective device discount. Homes built with storm shutters may also qualify for a storm shutter discount, as would homes constructed with hail-resistant roofs qualify for the hail-resistant roof discount.

In addition to discounts for new homes, homeowners are eligible for the same discounts as any other person. One of the biggest discounts is to bundle your home and auto insurance. Insurers also provide other smaller discounts for other reasons, such as loyalty and paying in full. Just talk to your insurance providers and learn more.

Make sure get enough insurance

When you’re insuring any home, new or old, make sure you get enough homeowners insurance to cover you if the unthinkable happens. Don’t forget to apply discounts based on the new build to significantly save you money. For inquiries, contact or email ONYX Insurance Brokers now!


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