What is the age of home discount?

The age of home discount is a discount home insurance companies offer for homes newer than a certain age. It’s usually offered in age brackets; for example 5-10 years old or 10-15 years old. At 15 years of age, your home is generally no longer eligible for an age of home discount.

New construction homes get the biggest discount as they are brand new, but that discount will be reduced over time as the home ages. At a certain point, the discount is no longer available.

How the age of a home affects home insurance rates

The age of a home has a major impact on home insurance rates. In fact, the new home discount is often the biggest one offered by an insurance company. As you can see by the rates below, homes less than five years old enjoy the biggest discount, and with many companies, the discount drops fast.

Age of home insurance discount by company

Below, you’ll see the average age of home discount by company and how it decreases over time. Some companies still offer a small discount at 20 years old, while for others the discount disappears.

Company5 years old10 years old15 years old20 years old
State Farm26%12%2%2%
American Family24%10%5%3%

Factors considered for the age of home discount

The main factor considered for the age of home discount is what year your home was built. Even if you have had major renovations, unless the home was rebuilt entirely, it will still be considered as old as its original construction date.

While updated wiring, plumbing and other updates can earn you a discount, they don’t change the age of the home.

How do home insurance companies assess the age of a home?

To determine the age of the home, an insurance company will look at the year of construction listed on the county records for the property. If you have evidence that the year listed is inaccurate, contact the county records division for a correction.