What Makes a Newly Constructed Home a Better Option

Building a new home may have a lot of considerations; one of which is the expenses you’ll going to spend, the contractor, the location, the design and structure, the length of time of its completion, etc. Thus, when you’ve decided to build a house, it can be both very exciting and a bit scary. However, if you are into insurance, a newly constructed home is indeed a better option.

One of the reasons you may want to consider a new construction home rather than an existing home is that insurance rates may be lower. In some areas, a new construction home may have insurance rates in the first year that are 20 to 25 percent lower than for an existing home. There are several reasons for the lower pricing.

Less Chance of Claim

Most of the homeowner insurance claims are related to broken pipes, failing electrical systems and other issues that are common in older homes. Since newly constructed homes have new plumbing and electrical systems, there is less chance you will need to file a claim due to a water pipe or electrical issue. Because there is less chance of a claim, the insurance company can offer you lower rates.

Building Materials

When you build a home, you are able to add features that may also make your home more insurable. Metal roofs, fire-resistant materials, and fire-suppression systems are easier to add in a newly constructed home than one that has already been built. Tile, slate, concrete, metal and architectural shingles have higher quality, are more durable and more fire-resistant which can also reduce your homeowner insurance costs.

Protective Device Discounts

When you build a new home, you are more likely to add protective devices. These may include deadbolt locks and sprinklers as well as burglary and fire alarm systems. Some insurance companies offer what is known as “protective device discounts” which can lower your costs. If you live in an area prone to severe weather, adding storm shutters or hail-resistant roofing may also qualify you for discounts.

One thing many experts suggest is to look into insurance before closing on your new home. Premiums may vary from company to company. You may also want to consider umbrella insurance which protects you and your assets from expensive litigation, including serious bodily injury, landlord liability or malicious prosecution. This type of insurance is especially beneficial if your new home is worth $500,000 or more.

Even when the completion of your home seems a long way off, the reality is that moving into a new construction home is usually worth all the effort involved. Knowing that you’re the first family to make memories in a home serves as a daily reminder of the hard work that has gotten you to this point. Plus, with the right planning in place, buying a new home is indeed a better option!

Talk to ONYX Insurance Brokers now and learn more about the benefits of newly constructed homes, contact us today!