The best home insurance providers for new homeowners are also the cheapest: AIG, Amica and CSAA. While USAA tops MoneyGeek's list, the insurer is exclusive to military members and their families. Check out MoneyGeek's rankings below for new or young homeowners with a newly-constructed home.
Best Homeowners Insurance for New Homeowners
Updated: July 6, 2026
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Key Takeaways
AIG earns the best cost and quality combination for non-military new homeowners at $75 per month with a 4.77 out of 5 MoneyGeek Score, while USAA leads all insurers with a 4.85 score but requires military membership.
Costs depend on how old your home is; new homeowners of old houses pay 70% more on average than newly-constructed homes for the same coverage.
If you just bought an older home, make sure to shop around, as rates can change by up to $5,904 per year for the same coverage.
Best Homeowners Insurance for New Homeowners — Overall Rankings
4.85 | $115 | $1,385 | Best score — military members only | |
AIG Insurance | 4.77 | $75 | $903 | Cheapest high-score option |
4.76 | $80 | $956 | Best price-quality balance | |
CSAA | 4.60 | $81 | $973 | Budget + quality (Western states) |
4.52 | $105 | $1,265 | AAA members | |
4.50 | $127 | $1,525 | Local agent access | |
4.30 | $160 | $1,918 | Customizable coverage | |
4.28 | $292 | $3,502 | High-value homes | |
4.24 | $138 | $1,660 | Standard coverage | |
4.16 | $181 | $2,173 | Bundling only | |
4.12 | $164 | $1,963 | Digital-first buyers | |
American Modern | 3.85 | $168 | $2,015 | — |
3.82 | $270 | $3,241 | — | |
3.67 | $282 | $3,383 | — | |
Rates reflect younger homeowners insuring new construction with $250K dwelling / $125K personal property / $200K liability / $1,000 deductible.
Having a newly constructed home is the most favorable profile in the homeowners insurance market for new homeowners. Modern systems and no prior claims history on the property produce the lowest baseline rates. The top five insurers by MoneyGeek Score all price below $130 per month for new construction, and three of the five cost under $85 per month.
Best Homeowners Insurance for New Homeowners Buying a Middle-Aged Home
A middle-aged home (roughly 20 to 40 years old) costs 45% to 48% more to insure on average than a newly constructed home. The top providers stay the same across both age groups, with one exception: USAA's rate climbs 68% to $194 per month. That $79 increase is the largest of any insurer in the top five.
USAA | 4.79/5 | $194 | $2,322 | +$79 per month (+68%) vs. newer |
AIG Insurance | 4.77/5 | $91 | $1,088 | +$16 per month (+21%) vs. newer |
Amica | 4.72/5 | $119 | $1,428 | +$39 per month (+49%) vs. newer |
CSAA | 4.57/5 | $117 | $1,401 | +$36 per month (+44%) vs. newer |
AAA | 4.55/5 | $130 | $1,560 | +$25 per month (+23%) vs. newer |
Rates apply to younger homeowners with middle-aged homes, based on a $250K dwelling, $125K personal property and $200K liability policy with a $1,000 deductible. The 'vs. Newer Home Rate' column shows the dollar and percentage increase over the same insurer's newer-home rate.
AIG's $16 per month increase from new to middle-aged home is the smallest dollar penalty of any insurer in the field. A new homeowner buying a 25-year-old property who starts with AIG keeps the best price-quality combination that existed for new construction.
Best Homeowners Insurance for New Homeowners Buying an Older Home
For new homeowners buying an older home, insurer selection matters more than for any other profile. The cost for older homes varies so widely across insurers that the wrong choice costs more than choosing the wrong coverage tier. A new homeowner who defaults to a familiar brand without comparing could pay $3,793 more per year than one who picks the lowest-penalty insurer.
USAA | 4.84/5 | $192 | $2,301 | +$77 per month (+66%) vs. newer |
AIG Insurance | 4.77/5 | $94 | $1,129 | +$19 per month (+25%) vs. newer |
Amica | 4.74/5 | $114 | $1,371 | +$34 per month (+43%) vs. newer |
CSAA | 4.58/5 | $118 | $1,410 | +$37 per month (+45%) vs. newer |
AAA | 4.55/5 | $146 | $1,746 | +$41 per month (+38%) vs. newer |
Rates are for younger homeowners with older homes, a $250K dwelling / $125K personal property / $200K liability policy and a $1,000 deductible.
The top five insurers by MoneyGeek Score for older homes are identical to the top five for new construction: USAA, AIG, Amica, CSAA, and AAA. The cost difference between choosing wisely and choosing poorly is much larger for resale buyers.
New vs. Old Home Insurance Costs for New Homeowners
The table below shows how each insurer prices the same younger homeowner profile as home age increases. This is the clearest data MoneyGeek has for identifying which insurers penalize older properties least.
AAA | $105 | $146 | +38% |
AIG Insurance | $75 | $94 | +25% |
Allstate | $181 | $294 | +63% |
American Modern | $168 | $196 | +16% |
Amica | $80 | $114 | +43% |
Chubb | $292 | $399 | +37% |
CSAA | $81 | $118 | +45% |
Farmers | $160 | $232 | +45% |
Homesite | $164 | $230 | +41% |
Nationwide | $138 | $296 | +114% |
Progressive | $270 | $586 | +117% |
State Farm | $127 | $188 | +48% |
Travelers | $282 | $522 | +85% |
USAA | $115 | $192 | +66% |
A new homeowner buying an older home who chooses Progressive instead of AIG pays $492 more per month, or $5,904 more per year, for a policy with a lower MoneyGeek Score.
Top 3 Provider Reviews for New Homeowners
USAA
MoneyGeek Rating
4.9/ 5
4.8/5Affordability
5/5Customer Experience
4.7/5Coverage Points
Average Premium for New Homes
$115 per month ($1,385 per year)Average Premium for Middle-Aged Homes
$194 per month ($2,322 per year)Average Premium for Older Homes
$192 per month ($2,301 per year)
AIG
MoneyGeek Rating
4.8/ 5
5/5Affordability
4.2/5Customer Experience
5/5Coverage Points
Average Premium for New Homes
$75 per month ($903 per year)Average Premium for Middle-Aged Homes
$91 per month ($1,088 per year)Average Premium for Older Homes
$94 per month ($1,129 per year)
Amica
MoneyGeek Rating
4.8/ 5
5/5Affordability
4.9/5Customer Experience
3.6/5Coverage Points
Average Premium for New Homes
$80 per month ($956 per year)Average Premium for Middle-Aged Homes
$119 per month ($1,428 per year)Average Premium for Older Homes
$114 per month ($1,371 per year)
Discounts New Homeowners Can Actually Use
Many home insurance providers offer discounts for new homeowners with newly-built homes, and even those that aren't. We've outlined a few discount opportunities that new homeowners can take advantage of.
New Home DiscountMost insurers apply a pricing advantage to recently built properties, usually homes under 10 years old. Confirm the specific program name and eligibility window with your insurer.
Bundle Home and AutoBundling a homeowners policy with an auto policy can save you up to 23% per year on average. However, this saving only works if the bundled insurer's all-in rate beats the cheapest standalone alternative. Compare the bundled total against each individual policy rate before committing.
Claims-Free DiscountInsurers reward policyholders with no recent claims. As a new homeowner with no prior policy, you start eligible for this discount at renewal if the first policy year is claim-free.
- Home Security System Discount
Installing a monitored alarm, deadbolts, smoke detectors, or a smart home security system qualifies for a discount at most insurers. The discount ranges from 2% to 15% depending on the system type and insurer. Confirm the specific program name when requesting your quote, since the named program determines the eligibility rules.
- Pay in Full or Through Escrow
Paying the annual premium in full, or having premiums paid through mortgage escrow, often qualifies for a small additional discount. For new homeowners whose lenders set up escrow automatically, this may apply without any action required. Confirm with the insurer at binding.
Homeowners Insurance vs. Mortgage Insurance
Mortgage insurance (PMI or MIP) protects the lender if the borrower defaults, paying the lender, not the homeowner. Homeowners insurance covers the structure, belongings and liability, paying the homeowner after a covered loss.
At the $250K dwelling limit, the average homeowners insurance premium for a new homeowner with new construction is $200 per month. PMI for a new homeowner with less than 20% down adds $80 to $150 per month on top of that. If something goes wrong, homeowners insurance is the only one of the two that pays the homeowner directly.
Does Your Credit Score Affect Your Homeowners Insurance Rate?
Yes, in most states a lower credit score raises the homeowners insurance premium. California, Maryland and Massachusetts restrict or ban credit-based pricing, so new homeowners in those states aren't subject to credit-based rate adjustments. In the other states, insurers weigh credit differently, and the gap between a good and fair credit profile can run several hundred dollars a year.
Bottom Line: Best Homeowners Insurance for New Homeowners
AIG is the clearest choice for most new homeowners, with a 4.77 out of 5 MoneyGeek score and rates starting at $75 per month for newly constructed homes. USAA leads every home age category for military members. Choosing the right insurer for your home's age is the single biggest money-saver: for old homes, the gap between the lowest- and highest-priced provider runs $5,904 per year for the same profile. Get quotes from at least three of the top five MoneyGeek-scored insurers before accepting any offer.
Homeowners Insurance for New Homeowners: FAQ
USAA leads MoneyGeek's rankings with a 4.85 out of 5 MoneyGeek score, but it's only available to military members and eligible family members. For non-military new homeowners, AIG (4.77, $75 per month for newly constructed homes) offers the highest score-to-price combination in the field. Amica is the runner-up, costing $80 per month with a 4.76 score, and is available nationally without a membership requirement.
At MoneyGeek's $250K dwelling limit, new or younger homeowners pay an average of $200 per month for newly constructed homes, $291 per month for middle-aged homes and $341 per month for older homes. Individual insurer rates for new construction range from $75 per month (AIG) to $292 per month (Chubb), a $217 per month spread for the same profile.
Most lenders require proof of homeowners insurance, specifically a declarations page showing insurer, coverage limits and first year's premium paid, before the closing date. Start shopping at least two to three weeks before closing to allow time for quotes, comparison and binding. A policy that is quoted but not yet bound is not proof of insurance for closing purposes.
Home age is a primary pricing variable. In MoneyGeek's analysis, older homes cost 70% more on average than new construction at identical coverage levels for the same younger homeowner profile.
No prior claims history doesn't penalize a new homeowner. It's neutral to positive from an underwriting perspective. The factors that affect a new homeowner's rate are home age, location, coverage level, credit score (in most states) and the insurer's pricing structure. A new homeowner without claims history starts eligible for claims-free discounts at renewal if the first policy year passes without a claim.
About Mark Fitzpatrick
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.