Posted on September 23, 2026 by Miller and Smith Blog Team
Buying a new home means keeping track of a lot of numbers. There’s the price of the home, of course, and then there’s your mortgage rate, property taxes, HOA fees, closing costs, and all the other pieces that go into figuring out what your monthly payment will look like. Homeowners insurance is another one of those numbers, and it’s easy to plug in an estimate and move on, especially when you’re still choosing finishes and thinking about where the furniture will go. It’s worth getting a real quote sooner rather than later.
One of the advantages of buying a new construction home is that insurance can often cost less than it does for a comparable older home. That’s not because insurance companies give you a break simply for having a brand-new kitchen or a home that still smells new. It has more to do with what’s underneath the finishes: new roofs, new plumbing, new electrical systems, new HVAC equipment, and construction that meets current building codes. All of those details can help reduce the risks an insurance company is looking at when it sets your premium.
At its simplest, homeowners insurance is about risk. An insurance company wants to know how likely a home is to experience damage and how expensive that damage could be. An older home has had more time for things to wear down, so the roof may be approaching the end of its useful life, plumbing connections can deteriorate, electrical systems may be decades old, and water heaters and HVAC equipment don’t last forever. A new home starts from a different place, with new systems, new materials and construction that met the building codes in effect when it was built, and that can translate into lower insurance costs.
Realtor.com data reported by Pro Builder found that, in 2025, the average annual insurance premium for a newly built home was 35% lower than the premium for a 20-year-old home, a difference of about $1,002 per year. It’s an interesting comparison, but don’t assume you’ll automatically save exactly 35%. Insurance premiums are specific to the home and the homeowner, and where the home is located, how much coverage you need, your deductible, the construction details and the insurance company you choose can all affect the final number.
In some cases, insurers may also offer a new-home discount, and the important thing is to ask. When you’re getting your quotes, make sure your agent knows that you’re insuring a newly constructed home and ask what discounts may apply.
The things an insurance company considers are surprisingly similar to the things we’d tell you to pay attention to when you’re buying a home. The roof matters, and so do the plumbing, electrical system, HVAC equipment and construction methods. Your insurer may consider things such as:
Older homes can certainly be updated, and a new roof, updated electrical system or replaced plumbing can make a difference when an insurance company evaluates a property. But there’s one thing you can’t renovate away, and that’s the home’s original construction date. It’s one reason new construction can have an advantage.
A home built today is constructed under today’s building requirements, and depending on the home and the carrier, features designed to improve a home’s resistance to wind, moisture, fire or other risks may also qualify for insurance credits. So when an insurance company looks at a new home, it isn’t simply seeing something that’s new. It’s seeing a home built with newer materials, newer systems, and current construction standards.
One of our favorite things about building homes is that some of the most important details are the ones you’ll never notice when you walk through a model. Great design is in the details, starting with the ones you never see, and that philosophy applies to more than the way a home looks.
We’ve been building homes in Virginia since 1964, and over the years we’ve learned that the quality of a home isn’t just about what you see when you walk through the front door. It’s also about everything that went into putting that door there in the first place.
If you’re buying a new home directly from a builder, you probably don’t need to purchase builders risk insurance yourself. Builders risk insurance is designed to cover a home while it’s under construction, protecting the structure and materials during the building process, including against certain risks such as theft or vandalism, as The Zebra explains. When you purchase a new Miller & Smith home, the home remains our responsibility until settlement, and your homeowners insurance takes effect when you close.
The situation is different if you’re building a custom home on land you already own. In that case, builders risk coverage may be something you’ll need to arrange during construction. If you’re not sure which situation applies to you, ask your sales manager, because it’s always better to know who is responsible for coverage before you get to settlement.
A new home can come with insurance advantages, but it doesn’t mean your homeowners policy covers everything. One distinction is easy to miss when you’re buying a brand-new home, and that’s the difference between damage and wear. Homeowners insurance is generally designed to cover sudden and accidental damage rather than normal wear and tear. That’s something you probably won’t have to think much about during the first few years, since your roof, HVAC system, water heater, and other major components are starting out new, but eventually every home gets older.
That’s where regular maintenance and your builder warranty come in. Your warranty is separate from your homeowners insurance, so make sure you understand what it covers and how long that coverage lasts.
Earlier than you might think. We recommend starting the conversation with your insurance agent while you’re working through your contract and selections. Your lender will generally need proof of homeowners insurance before closing, and waiting until the last week can leave you with less time to compare quotes, review coverage or make changes. Your policy should generally take effect on your settlement date.
Remember, too, that the home you’re closing on may be different from the home you originally priced. You may have finished the basement, added an outdoor living space, or selected structural options that changed the size or configuration of the home, and those changes can affect the home’s replacement cost. Give your agent the final information before the policy is issued so the coverage reflects the home you’re actually buying.
When you get a homeowners insurance quote, don’t stop at the premium. Ask a few questions about what’s behind that number:
One question is especially important: How did you determine the replacement cost? Your insurance coverage shouldn’t simply match the price you paid for the home. The purchase price includes the land, while replacement cost is focused on what it would cost to rebuild the home itself, and those numbers can be very different. Your Miller & Smith community sales manager can provide your agent with the square footage and construction details they need to help determine the appropriate coverage.
If you’re looking at new construction in Virginia, we’d love to show you what goes into one of our homes. At Sadler Square in Glen Allen, we’re building single-family homes in Short Pump, close to Short Pump Town Center. At Beacon Park in Belmont Bay, our four-level townhomes feature rooftop terraces in a waterfront community in Woodbridge. And at Birchwood at Brambleton in Ashburn, our elevator brownstones are designed for buyers 55 or better.
If you’re working with a shorter timeline, take a look at our immediate delivery homes. These homes are finished or nearing completion, giving you the opportunity to move sooner without giving up the benefits of new construction. Wherever you start, take the time to understand not just what your new home costs today, but what it takes to own it over time, and insurance is one part of that picture.
It often can be. New roofs, plumbing, electrical systems, HVAC equipment and current construction standards can reduce some of the risks associated with an older home. In 2025, Realtor.com data reported by Pro Builder showed average insurance premiums for newly built homes were 35% lower than those for 20-year-old homes, though your actual premium will depend on the home, its location, your coverage, deductible and insurance carrier.
There isn’t one price that applies to every new home in Virginia. Your premium can depend on the home’s replacement cost, location, construction, coverage limits, deductible and the insurance company you choose, so the best way to find out what you’ll pay is to get quotes for the specific home you’re buying.
Generally, no, if you’re purchasing a new home directly from a builder. The builder typically maintains coverage during construction, and your homeowners insurance begins when you close. If you’re building a home on land you already own, builders risk insurance may be necessary during construction.
Start getting quotes during your contract and selections process. Your lender will typically require proof of insurance before closing, so giving yourself time to compare options can make the process much easier, and your policy’s effective date should be set for your settlement date.
It can. Insurance companies often consider the age, material and characteristics of a home’s roof when setting premiums, and a new construction home starts with a new roof, which can help from an insurance perspective.
No. New-home discounts are generally tied to the age of the home, so your premium can change as the home gets older. Ask your agent how the premium may change over the first several years of ownership so you know what to expect.
Some of the things that make a new home different aren’t visible from the curb. They’re behind the walls, above the ceiling and under the floors. So when you visit a Miller & Smith model, ask about them: what’s behind the walls, what materials and systems we use, how the home is built and what the warranty covers. Then take that information to your insurance agent.
Because buying a home isn’t just about finding a floor plan you love. It’s about understanding the home you’re going to live in, and all the details that went into building it.
Come see a Miller & Smith home for yourself.
Miller & Smith is a homebuilder and does not sell insurance or provide insurance advice. Coverage, discounts, and pricing vary by carrier, location, and individual circumstances. Consult a licensed insurance agent for guidance on your situation.