Newer homes cost roughly 40% less to insure than older homes at lower coverage levels. At the $100,000 dwelling tier, a newer home costs $103 per month ($1,238 per year) versus $174 per month ($2,089 per year) for an older home, a difference of $851 per year. The table below shows how this gap plays out across all five coverage levels.
Homeowners Insurance Cost by Age of Home
Updated: April 16, 2026
Advertising & Editorial Disclosure
Key Takeaways
Older homes cost up to 69% more to insure than newer homes at the same coverage level, based on my analysis of national averages.
AIG Insurance offers the lowest average annual premium for a standard $250,000 dwelling policy at $904 for a newer home, while USAA earns the highest MoneyGeek Score of 4.80 out of 5.
The annual cost gap between newer and older homes grows from $851 at the $100,000 dwelling level to $4,048 at the $750,000 level.
Average Homeowners Insurance Cost by Age of Home
Data filtered by:
Middle Age
| $100K Dwelling / $50K Personal Property / $100K Liability | $152 | $1,828 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $289 | $3,467 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $490 | $5,874 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $693 | $8,317 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $894 | $10,733 |
Best Home Insurance Companies by Home Age
Across new, middle-aged and older homes, AIG Insurance is the best home insurance provider for $250,000 in dwelling coverage with a 4.77 MoneyGeek score out of 5 across the board. USAA is the best option with the highest score, but it's exclusively for military members, veterans and their dependents.
Data filtered by:
Middle Age
| AIG Insurance | $91 | $1,089 | 4.76 |
| Amica | $119 | $1,425 | 4.72 |
| CSAA | $126 | $1,514 | 4.55 |
| AAA | $128 | $1,539 | 4.54 |
| American Modern | $174 | $2,089 | 3.97 |
| State Farm | $179 | $2,151 | 4.49 |
| USAA | $186 | $2,234 | 4.79 |
| Homesite | $211 | $2,526 | 4.17 |
| Farmers | $232 | $2,785 | 4.3 |
| Allstate | $245 | $2,942 | 4.2 |
| Nationwide | $278 | $3,341 | 4.1 |
| Chubb | $352 | $4,221 | 4.34 |
| Travelers | $453 | $5,435 | 3.65 |
| Progressive | $459 | $5,505 | 3.75 |
Why Home Age Impacts Insurance Costs
Insurers price homeowners insurance based on a home's structural risk profile, and age is a direct proxy for two cost drivers.
- Outdated wiring and plumbing: Older electrical panels (such as Federal Pacific or Zinsco) and galvanized steel pipes are known failure points that increase fire and water damage risk.
- Original roofing past its lifespan: A roof older than 20 years is more vulnerable to wind, hail and water intrusion, and many insurers require a roof inspection before writing a policy.
- Non-compliant building codes: Homes built before modern code updates may lack hurricane straps, fire-resistant sheathing or adequate seismic bracing, all of which increase the cost of a covered loss.
- Higher replacement costs: Older homes often use materials and construction methods that are more expensive to replicate, such as plaster walls, hardwood framing or custom millwork, which drives up the insurer's payout after a claim.
- Updated building codes: Homes built after 2010 meet stricter wind, fire and seismic resistance standards, which reduces damage from natural disasters.
- Modern electrical and plumbing systems: New wiring and piping are far less likely to cause fires or water damage, two of the most common and expensive homeowners insurance claims.
- Newer roofing materials: A roof under 10 years old is less prone to leaks, wind damage and storm-related losses, which are among the leading drivers of homeowners insurance claims.
- Better insulation and construction materials: Energy-efficient materials and modern framing techniques reduce the severity of weather-related damage to the structure.
Older Homes Have a Higher Risk Profile
Older homes cost more to insure because aging systems and outdated construction increase both claim frequency and repair costs. A home built in 1980 has had more than four decades of wear on its core systems, and replacing those systems after a loss costs more than repairing modern equivalents. At the $100,000 dwelling level alone, the premium difference between newer and older homes is $851 per year.
Newer Homes Carry Lower Baseline Premiums
Newer homes cost less to insure because they are built to current building codes, use modern materials and have mechanical systems with longer remaining lifespans. These factors reduce both the likelihood and the cost of claims, which translates directly to lower premiums. At the $250,000 dwelling level, a newer home saves $1,683 per year compared to an older home.
Homeowners Insurance Cost by Age of Home: Bottom Line
Older homes cost 30% to 69% more to insure than newer homes, and the gap grows at every coverage level. You cannot change when your home was built, but updating key systems such as your roof, wiring and plumbing can lower your risk profile and your premium. Comparing quotes from at least three insurers is the fastest way to find affordable homeowners insurance for your home's age bracket.
Home Insurance Cost by Age: FAQ
How much more does homeowners insurance cost for an older home?
An older home (built around 1980) costs 69% more to insure than a newer home (built around 2020) at the $100,000 dwelling level. At the standard $250,000 level, the gap is $1,683 per year.
Does home age affect which insurer is cheapest?
Yes. AIG Insurance offers the lowest rate for newer homes at $904 per year, while CSAA has the smallest price gap between newer and older homes at $473 per year.
Can renovating an older home lower my insurance premium?
Updating your roof, electrical panel, plumbing and HVAC system can reduce your premium because these upgrades lower your home's risk profile. Ask your insurer which specific updates qualify for a discount.
Does homeowners insurance cover damage caused by outdated wiring or plumbing?
Homeowners insurance doesn't cover damage from systems that fail due to age, wear or lack of maintenance. It covers sudden and accidental events, such as a pipe that bursts unexpectedly, but not gradual deterioration.
MoneyGeek analyzed homeowners insurance rates across five coverage levels and three home age categories (newer, middle age, older) using rate data from Quadrant Information Services. Average rates reflect a 2,500-square-foot single-family home with a $1,000 deductible, no claims in five years, good credit and an owner aged 41 to 60. Provider rankings incorporate average premiums and MoneyGeek's proprietary scoring model, which evaluates affordability and customer satisfaction.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.