Why New Construction Homes Often Cost Less to Insure Than Resale Homes

When buying a home, most people focus on upfront costs—purchase price, mortgage rates, down payments. But savvy buyers know to consider the total cost of ownership—including the often-overlooked cost of home insurance. One surprising advantage of buying a new construction home is that it often comes with significantly lower insurance premiums compared to older resale homes. Here’s why.

1. New Construction Means Lower Risk

New homes are built to modern building codes using up-to-date construction techniques and materials. This lowers the risk of claims for fire, water damage, electrical issues, and structural failures. Insurance companies reward lower risk with lower premiums.

At Homes by Thrive, our properties are built with high-efficiency HVAC systems, state-of-the-art plumbing, and electrical systems—all of which reduce the likelihood of a claim. Fewer claims = lower risk = lower premiums.

2. Built-In Safety Features

From smoke and carbon monoxide detectors to smart thermostats and security systems, new homes are often equipped with features that prevent or minimize damage. These aren’t just conveniences—they’re discounts in the eyes of insurers.

Many of our homes include optional smart technology packages that improve both safety and efficiency, which can lead to even more insurance savings.

3. Warranties Reduce Insurance Exposure

New homes typically come with builder warranties covering major systems and structural integrity. This means that if something does go wrong, the builder—not your insurance company—is often responsible for repair or replacement.

Homes by Thrive provides every buyer with access to my.homesbythrive.com, a homeowner portal that tracks warranties, service requests, and manuals to make ownership stress-free.

4. No Hidden Issues or Surprise Costs

Older homes may come with “character,” but they also come with risk: outdated wiring, aging roofs, plumbing corrosion, and more. These hidden issues lead to higher insurance premiums due to increased claim likelihood.

Every move-in ready home by Thrive is newly built, inspected, and guaranteed to meet or exceed today’s standards.

5. Known Replacement Costs

Insurance premiums are partially based on the cost to rebuild. With a new home, those costs are easy to estimate. Materials are modern, prices are current, and the blueprint is on file. For older homes, rebuilding costs are harder to predict—especially if original materials are no longer available—so premiums go up.

6. Incentives and New Construction Discounts

Most major insurers offer discounts for newly built homes. Some carriers may provide 10%–30% off standard premiums simply because the home is new and less likely to require a payout.

Combine that with additional discounts for safety and security features, and the savings can be substantial over time—especially when paired with tax incentives like Community Reinvestment Areas (CRAs) or tax abatements that Thrive communities often qualify for.

7. Location, Location, Location

New homes are often part of master-planned communities designed with access to emergency services, modern infrastructure, and low-crime statistics—all of which insurers love. These factors are reflected in your premium.

Explore our growing list of intentional neighborhoods designed for convenience, safety, and community belonging.

What This Means for Buyers

While resale homes might seem more affordable up front, the long-term savings on insurance, utilities, and maintenance often make new construction the smarter financial choice.

Homes by Thrive builds homes that make sense—for your lifestyle and your budget. When you purchase a new home with us, you're not just getting a beautiful space—you're getting long-term savings, peace of mind, and a smoother path to ownership.

Learn More

• Want to understand how our homebuilding process works? Visit our Our Process page.
• Looking for available homes today? Browse our Move-In Ready Homes.
• Curious about financing and ownership costs? Review our FAQs for helpful insights.

Ready to take the next step? Contact our team today and explore how a brand-new home c