In auto insurance, a new car will usually cost more to insure than an older model. In home insurance, however, the savings often goes to the new house or one that has been recently renovated.
The reason? New pipes don't leak, new furnaces don't malfunction, new electrical panels and wiring don't cause fires, and new roofs, chimneys and foundations don't lead to costly claims.
"We offer homebuyer discounts," says Meehan. "The logic behind that is, you've had it inspected by a professional and a lot of times they've detected -- and you've arranged to have an electrician fix -- all those wiring issues. Usually, when you buy a new or even an existing home, that loss mitigation has been done because of the inspection process. It gives us a better understanding of what's going on in that home."
If you're considering a renovation, check with your insurance agent first. They may have suggestions on how to tweak your project to maximize your home insurance savings.
New home or renovation credit: up to 25 percent.