What house should I buy, new or old? | UNIVISTA INSURANCE

What house should I buy, new or old?

What house should I buy, new or old? When choosing a home, many buyers hesitate between opting for a new or an old house. This dilemma is particularly relevant in a country where old houses can appear impeccably. The reality is that this question has a complex answer, as multiple factors come into play beyond personal preference.
To be on the same page, let’s define a new house in the insurance realm as no more than ten years old. Generally, an old house is over 40 years old.
Old vs. New
Older houses are often more spacious, situated in more established neighborhoods and tend to be more affordable. However, due to their extended existence, they might not comply with current city codes, require more maintenance and repairs, and be less energy-efficient. When insuring them, insurance companies consider the replacement cost of antique architectural details, which are challenging to obtain nowadays, as well as the property’s claims history and the roof conditions, electrical system, and pipes.
On the other hand, despite being more expensive, new houses usually have facilities in optimal condition. There’s no need for immediate repairs, and their energy efficiency can result in significant savings on energy consumption. Roofs, doors, and windows are generally in good condition.
The insurance premium for a new house can be at least 50% cheaper than an older property. Some insurance companies may prefer not to insure old houses.
Despite the descriptions, there isn’t a definitively better option. After the excitement of finding the dream home, the buyer needs to be realistic and analyze the consequences of choosing one.
Including an insurance agent in the home-buying equation is crucial from the outset. They can shed light on the costs of the specific property under consideration. What house should I buy, new or old?

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