Rising insurance costs are changing what buyers look for in a new home
Rising insurance costs are giving homebuyers more reasons to examine a property’s location, construction, safety features, and long-term ownership costs. Newer homes with modern systems and updated building features may offer advantages as buyers compare the full cost of owning a home.
How much will it really cost to own the home you’re considering?
Homebuyers have always weighed the purchase price, mortgage, and location. New data from the National Association of Insurance Commissioners shows why insurance deserves a closer look, with average homeowners insurance premiums rising by 18% to 43% across U.S. regions between 2018 and 2024, even after adjusting for inflation.
Higher premiums are encouraging buyers to look beyond the listing price. A home that fits the budget today still needs to make financial sense years after the purchase.
Why Are Homeowners Insurance Rates Rising So Fast?
Several factors are pushing homeowners insurance costs higher.
More frequent and expensive weather events can increase claims, while higher labor and construction costs make repairs and rebuilding more expensive when damage occurs.
Location also matters. Homes in areas exposed to hurricanes, flooding, wildfires, severe storms, or other hazards can carry greater insurance costs because insurers face a higher potential for losses.
The result is a larger ownership expense that buyers need to consider before choosing a home.
What Home Features Have an Impact on Insurance Costs?
Certain features can make a home less vulnerable to damage or theft, which may affect how an insurer assesses the property. Discounts vary by insurer and location, so buyers should confirm potential savings before assuming a feature will lower their premium.
Features that may help include:
- Impact-resistant roofing designed to withstand severe weather
- Storm shutters or reinforced windows
- Security systems and monitored alarms
- Updated electrical, plumbing, and heating systems
- Smoke detectors and fire suppression equipment
- Backup generators or other emergency power systems
- Modern construction that meets current building codes
Looking beyond the listing photos to the features that protect a home can help you make a more informed comparison.
New Construction Has a Built-In Advantage
The real estate market offers both existing and new construction homes, with the latter giving buyers a stronger starting point when insurance and maintenance costs are part of the decision.
Modern homes typically come with newer roofing, electrical systems, plumbing, HVAC equipment, and other major components, reducing the immediate need for costly replacements.
Building codes and construction standards also change over time, and newer homes are built to meet the requirements in place when they’re constructed. Buyers should still compare insurance quotes for specific properties, since premiums depend on location, coverage, the insurer, and other factors.
Buyers exploring new construction can contact DSLD Homes to learn more about available homes and communities.
Looking Beyond the Listing Price When Buying a Home
Insurance costs deserve a place alongside the mortgage, taxes, and maintenance when buyers compare homes. Location, construction quality, safety features, and the age of major systems can all affect the long-term cost of ownership. Getting insurance quotes early and asking questions about a home’s construction can help you avoid surprises after closing.
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