Why Newer Homes Carry Lower Risks
Newly built houses benefit from these improvements:
- Modern building codes: Building codes are constantly evolving to address worsening natural disaster risks, so newer homes are typically better prepared to withstand severe weather. Modern requirements often include enhanced structural connections in hurricane areas, higher elevation requirements in flood-prone cities and enforced noncombustible zones in wildfire states, according to resilience expert and engineer Aris Papadopoulos.
- New roofs: Your roof is your home’s first line of defense against weather, so it factors heavily into your home insurance rate and whether insurers will cover your house at all. Papadopoulos, who founded the nonprofit Resilience Action Fund to educate homeowners on disaster preparedness, cautions that insurers tend to be wary of roofs over 10 years old.
- New home systems: Newly built houses don’t suffer from age-based structural problems, such as old electrical wiring – a major fire hazard – or outdated plumbing systems prone to leaks.
How To Renovate an Older Home and Reduce Your Premium
Most Americans live in older homes, so targeted upgrades are essential to address insurers’ concerns and lower insurance costs. Beyond replacing your roof and outdated systems, consider how to tackle catastrophe risks in your area:
- Windstorm resilience: For homes east of the Rockies, Papadopoulos recommends ensuring your roof complies with Fortified construction standards, installing a wind-rated garage door and upgrading your other doors and windows.
- Wildfire mitigation: Consider enrolling in a program such as Wildfire Prepared, using mesh screening on vents and upgrading your roof and siding with fire-resistant materials.
- Flood prevention: Though home insurance doesn’t cover flooding, flood mitigation is critical for lowering flood insurance costs or avoiding expensive losses if you don’t have flood coverage. Key upgrades include elevating electrical outlets and mechanical equipment and installing water-resistant ground floors and baseboards, Papadopoulos says.
