The best home insurance providers for new homeowners are also the cheapest: AIG Insurance, 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: June 9, 2026
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Key Takeaways
AIG Insurance 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 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) introduces an average 45% to 48% premium increase compared to newly-constructed homes. While the best home insurance providers for middled-aged homes stay the same as those for newly-constructed properties, a notable change is that USAA's costs increased by 68%, pushing it to $194 per month. This gap of $79 per month is the biggest jump compared to any of the top five from the previous table.
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 are for younger homeowners with middle-aged homes, a $250K dwelling / $125K personal property / $200K liability policy and a $1,000 deductible. "vs. Newer Home Rate" shows the dollar and percentage increase compared to the same insurer's newer-home rate.
AIG Insurance'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 Insurance 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 Insurance, 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 Insurance 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 Discount
Most insurers apply a pricing advantage to recently built properties, typically homes under 10 years old. Confirm the specific program name and eligibility window with your insurer.
Bundle Home and Auto
Bundling 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 rates before committing.
Claims-Free Discount
Insurers 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. It pays the lender, not the homeowner. Homeowners insurance covers the structure, belongings, and liability, paying the homeowner after a covered loss. The two products are required for different reasons and serve entirely different purposes.
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. Both payments are required, but only homeowners insurance pays out anything to the homeowner if something goes wrong.
Does Your Credit Score Affect Your Homeowners Insurance Rate?
Yes, in most states a lower credit score raises the homeowners insurance premium. Three states restrict or ban credit-based pricing: California, Maryland, and Massachusetts. New homeowners in those states are not subject to credit-based rate adjustments. For new homeowners in other states, some insurers weight credit more heavily than others, and the rate difference between a good and fair credit profile can be meaningful.
Bottom Line: Best Homeowners Insurance for New Homeowners
In MoneyGeek's analysis, the clearest recommendation for most new homeowners is AIG Insurance with 4.77 out of 5 MoneyGeek Score at $75 per month for newly-constructed homes. For military members, USAA leads every home age category. The single decision that saves new homeowners the most money is choosing the right insurer for their home's age, because the gap between the lowest and highest provider for old homes is $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
What is the best homeowners insurance for first-time buyers?
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. For non-military new homeowners, AIG Insurance (4.77, $75 per month for new;y-constructed homes) delivers the highest score-to-price combination in the field. Amica as the runner up costs $80 per month with a 4.76 score, and is available nationally without a membership requirement.
How much does homeowners insurance cost for a new homeowner?
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 a middle-aged homes and $341 per month for an older homes. Individual insurer rates for new construction range from $75 per month (AIG Insurance) to $292 per month (Chubb), a $217 per month spread for the same profile.
When do I need homeowners insurance when buying a house?
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.
Does the age of my home affect my homeowners insurance rate?
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.
Can I get homeowners insurance with no prior claims history?
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 has produced 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.
Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.