What is the age of home discount?
The age of home discount lowers homeowners insurance costs for newer houses, with average savings of about 40% for new construction and 26% for homes five years old or less. The discount reflects the lower risk of system failure and structural damage, and it becomes smaller as the home ages, eventually disappearing.
The discount is usually based on an age range rather than each individual year, so it may change at five years, and again at 10 and 15.
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
Age-of-home discounts vary by insurer, but the pattern is consistent: newer homes get the biggest savings, and the discount shrinks over time. At five years, discounts range from 22% to 39%, and by 20 years they fall to 1% to 5%, with some insurers offering no discount at that point. Nationwide offers the largest age-of-home discount in our data, with 39% at five years, 24% at 10 years, 13% at 15 years, and 5% at 20 years.
| Company | 5 years old | 10 years old | 15 years old | 20 years old |
|---|---|---|---|---|
| State Farm | 26% | 12% | 2% | 2% |
| Farmers | 22% | 11% | 3% | N/A |
| Allstate | 25% | 7% | 1% | 1% |
| USAA | 38% | 21% | 8% | 3% |
| Nationwide | 39% | 24% | 13% | 5% |
| American Family | 24% | 10% | 5% | 3% |
| Travelers | 35% | 21% | 9% | 4% |
| Auto-Owners | 22% | 12% | 4% | 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.
A 30-year-old home stays a 30-year-old home even if you remodel the kitchen or replace the plumbing.
If you own an older home, report updates such as:
- Roof replacement
- Electrical rewiring
- Plumbing upgrades
- New heating or HVAC systems
- Other major structural improvements
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?
Home insurance companies use the year your home was built based on what you provide during the application process, and which they verify through property records during underwriting. They also review the condition and age of major systems like the roof, plumbing, electrical and heating to understand the home’s overall risk level.
It’s also important to separate the age of the home from the age of its systems.
A home built in 1985 with a new roof installed in 2024 is still a 1985 home, but the newer roof will lower your insurance cost.
FAQ: Age of home insurance discounts
How much is the age of home discount?
The age-of-home discount averages 26% for homes five years old or less, 13% at 10 years, 6% at 15 years and 2% at 20 years, based on Insurance.com data. New construction averages a 40% discount. Your actual savings depend on your insurer, location and home condition.
Does renovating an old house make it eligible for a new-home discount?
No, renovations do not change the home’s original construction year, so they won’t qualify it as new construction. However, upgrades to systems like plumbing, electrical, heating or roofing can still reduce your premium through separate discounts.
Does replacing your roof lower home insurance rates?
Yes, replacing an older roof will lower your insurance cost. Insurance.com data shows an average 11% discount for roof upgrades, and newer roofs are less likely to result in a claim. Savings depend on your insurer, roof type and location.
Which company has the biggest age-of-home discount?
Nationwide has the largest age-of-home discount in the data, with 39% at five years, 24% at 10 years, 13% at 15 years and 5% at 20 years. However, the best insurer for you depends on your home and location, so it’s important to compare quotes rather than focus on one discount alone.
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