What Affects Your Home Insurance Premium? Year Built, Materials, and Maintenance

When people think about home insurance, they often focus on the policy itself. Deductibles, coverage limits, or which insurer they choose usually get the most attention. In reality, one of the biggest drivers of cost is the home itself. 

The physical condition, age, materials, and upkeep of a property all play a major role in pricing. Understanding these factors that affect homeowners insurance premiums can help you make smarter decisions, whether you already own a home or are planning to buy one.

How home age impacts insurance premiums

Older homes often come with higher insurance premiums, but it is not simply because of their age. The real concern for insurers is what tends to come with older construction.

“From what we see in real homes every day at Remodel Republic, insurance premiums are often tied to how old a home is, what it’s built with, and how well it’s been maintained over time,” says Wade, Project Manager at Remodel Republic in Atlanta, GA. “Older homes can cost more to insure due to aging electrical, plumbing, or roofing systems, while homes that have been updated with modern, code-compliant materials tend to carry less risk.”

As homes age, systems wear down and materials may no longer meet current safety standards. Older wiring, outdated plumbing, and aging roofs increase the likelihood of fire or water damage claims. Even if a home looks charming and well cared for on the surface, insurers are thinking about what is behind the walls.

There is also the issue of replacement costs. Taralynn, a home restoration specialist for 100-year-old homes at Grandma’s House DIY, explains that older homes can be expensive to insure for reasons many homeowners do not expect. “Insurance premiums in older homes tend to be higher not just because of obvious risks such as failing windows and infrastructure but also because oftentimes replacing, repairing, or restoring unique, older materials up to modern safety standards can sometimes be more expensive as well.”

In other words, even a beautifully restored older home may still carry higher insurance costs because specialized materials and labor drive up claim payouts.

Materials, systems, and code compliance

Beyond age, what a home is built with and whether they’re up to current standards can significantly affect insurance pricing. Insurers pay close attention to systems that commonly cause claims, especially electrical and plumbing.

“In older homes, outdated plumbing or electrical systems can increase insurance risk and, in some cases, lead to higher premiums,” says Marco DeRose, Partner at New York, NY-based general contractors company, Sweeten. “Upgrading these systems to current code standards can reduce the likelihood of fire or water damage and may result in long-term insurance savings.”

From an insurer’s perspective, fire risk and water damage are two of the most expensive claim categories. Knob-and-tube wiring, galvanized pipes, or aging supply lines raise red flags because failures tend to happen suddenly and cause widespread damage. Homes with modern, code-compliant systems signal lower risk and more predictable outcomes.

Wade reinforces this point, noting that updated homes typically cost less to insure because they are seen as safer investments. Materials that meet current building codes reduce the chance of catastrophic claims, which is exactly what insurers are trying to avoid. When looking at the factors that affect homeowners insurance premiums, system updates often have more impact than cosmetic improvements.

Maintenance and ongoing upkeep

Insurance pricing is not just about how a home was built. It is also about how it is cared for over time. Regular maintenance sends a strong signal to insurers that a homeowner is proactive rather than reactive.

“A well-maintained home plays a significant role in keeping home insurance premiums in check,” says Greg Nelson, Florida-licensed general contractor at Nelson Construction and Renovations, Inc. “Regular repairs and outdoor upgrades such as roof replacements or updated electrical or plumbing systems, and proper water management reduce the likelihood of claims.”

Insurers often look favorably on homes with clear maintenance records because small issues are less likely to turn into major losses. Preventative maintenance can extend the life of critical building components, which reduces the chance of large, unexpected claims.

Greg adds that this upkeep can also influence underwriting decisions over time. “Ultimately, staying proactive with home upkeep can lead to better coverage terms and more competitive insurance premiums over time.”

This is where homeowners tend to have the most control. While you cannot change when your home was built, you can control how well it is maintained.

Location and environmental risk

Even a well-built and carefully maintained home can face higher premiums based on location alone. Environmental risk plays a major role in insurance pricing.

According to Wade, “Location also plays a role, as homes in higher-risk areas usually come with higher premiums.” Homes in areas with higher exposure to hazards like flooding, wildfires, or severe storms are simply more expensive to insure.

While homeowners cannot move their house to a new location, knowing these risks can help explain premium differences between similar homes in areas that aren’t disaster-prone. Location often amplifies or offsets the other factors that affect homeowners insurance premiums, such as age and materials.

Final thoughts

Homeowners cannot control every variable that affects insurance costs, but many of the biggest influences are tied directly to the home itself. While location and original construction may be fixed, upgrades and home maintenance can make a meaningful difference over time.

Buyers exploring different financing programs should be aware that some loans come with specific property requirements. For instance, an FHA home loan must meet FHA appraisal standards. These standards often overlap with the same home features that influence insurance premiums, including the home’s age, materials, and overall condition.

By understanding these factors that affect homeowners insurance premiums, homeowners and buyers can make more informed decisions that support long-term affordability.

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