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New Homes are Less Expensive to Insure

Posted: August 21, 2026 | Categories: News | Warranty | New Home Construction

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Why buy a NEW HOME vs a RESALE

The good news for homebuilders is that, on average, newer homes are cheaper to insure than existing homes. We crunched the numbers and found that, nationally,new homes built in 2020 or later are 10%–15% cheaper to insure per square foot than homes built between 1980 and 2010.

This gap is not surprising. Premiums tend to grow with the age and maintenance profile of older construction. Aging roofs, older plumbing and electrical, and dated materials often increase claim frequency and replacement costs, and insurers often explicitly apply discounts for new homes.

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Savings are much higher in markets with older housing stock and high catastrophe risk

Insurance is generally cheaper for new homes in markets with much older housing stock. Places like San Francisco, Boston, and Philadelphia have large concentrations of older housing stock, and new homeowners in these markets enjoy much cheaper insurance costs on a per-square-foot basis (20%–50% discount). Note that we define new homes as homes built after 2010 for metro-level comparisons due to small sample sizes for homes built after 2020.

The new home insurance discount still holds in Sunbelt markets, despite comparatively newer existing home stock. New homes in markets like Dallas, Houston, and Atlanta are 9%–16% cheaper to insure than a comparable existing home.

Insurance for new homes is also often cheaper in markets with higher catastrophic risk. In catastrophe-prone regions, disaster coverage makes up a higher share of the insurance bill. Insurers typically discount for features like impact-rated windows, hip roofs, and roof-to-wall reinforcement. New homes may get certain mitigation credits automatically under current building codes, while older homes may qualify only after retrofitting.

  • This helps explain the sizable average insurance discounts that new homeowners enjoy in catastrophe-exposed markets like Miami (34%) and Los Angeles (25%).
  • The location of new homes vs. existing stock also likely plays a role: new homes in Florida markets are often located farther inland and may be more insulated from wind and flooding risk than existing stock concentrated closer to the coasts.

By Lake Arrowhead

BUYING A HOME

New homes at Lake Arrowhead start from the mid $400s. Pricing varies by neighborhood and home type — Woodlands ranch homes start from the mid $400s, Waterview Townhomes and Fort Gibson ranch homes from the low $500s, and Timber Ridge luxury homes from the low $600s to the $800s. View current pricing on each neighborhood page.

All homes sold through the Lake Arrowhead sales office are new construction, built by award-winning veteran Georgia builders, including Majestic Lifestyle Builders, Rezide Properties, TIH Homes, and JW Collection.

Yes — resale homes are available, though they are not listed through the Lake Arrowhead sales and information center. Community covenants allow a uniform neighborhood resale sign on properties, so we recommend working with a local realtor familiar with the community to find resale listings.

Lake Arrowhead offers something for everyone: single-family ranch homes, waterview townhomes, and luxury custom homes with all the bells and whistles across multiple neighborhoods, including: Woodlands, Fort Gibson, Timber Ridge, and Waterview Townhomes.

Yes — Lake Arrowhead offers a Discovery Stay & Play program where you can reserve a luxury golf villa for a short stay to experience the community before deciding on the type of home and neighborhood of choice. Contact the sales and information center at 770-720-2700 to arrange a visit.

Once you close, please contact the Membership Director at 770-721-7913 or membership@lakearrowheadga.com to schedule your Membership Orientation — you'll receive gate devices, set up billing, and obtain your welcome package.