North Texas residents love buying new construction homes in Burleson, Ft Worth, Prosper, Justin, McKinney, and all around the Metroplex.
It's great to move in to a brand new home and not have to worry about anything other than how to set up your internet service and where to store your stuff. Typically there is no painting, no repairs, no cleaning out the back corner of the attic, or other hassles that come with a pre-existing home purchase. One of the other things that people take comfort in when they purchase a new build is that the cost of insurance is incredibly inexpensive compared to older homes. We are often asked how this is possible. It's a combo of things really. Let's take a look!
Number one on the list is going to be the fact that the house is brand spanking new. Seems obvious right? Think of it from this perspective though. If a toilet is brand new, is it likely to have a problem that will flood the house? If your water heater is brand new, is it likely to rupture? Home insurance companies realize this and rate accordingly.
Number two on the list is going to be related, but is roof specific. One thing that we've seen with all of the hail activity in Texas over the last few years is that a brand new roof, that is properly installed is less likely to be affected by the smaller size hail that is much more frequent than the large stuff. Make no mistake, your awesome roof will not stand up to grapefruit sized hail. But the small pea sized stuff. You will be golden. And the companies know this.
Number three on the list is simply that the companies want you as a customer. Say what? Dirty insurance secret time. Brand new homes are often bought using a loan. Mortgages have the ability to require you to escrow the taxes and insurance. The companies realize that customers with a policy in escrow are much more likely to hang around as a customer longer since they don't directly realize how much the insurance premium will change over time. Guess what that means? They know you're going to hang around while those premiums increase over the first few years. So they are using a bit of teaser rate to get you in the door.
So what does this mean for you the homeowner? Enjoy the savings while you enjoy the smell of new home. Insurance For Texans recommends working with an independent insurance agent to insure your home. They can help keep an eye on that premium and provide long term options to help keep the price in check. Talk to us to see how these options can affect your new home purchase!
