Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published August 18, 2026 · Updated October 1, 2026

Is home insurance cheaper on new homes? What the age of your house changes in Texas

This guide explains how the age of a house can affect home insurance in Texas. It covers what the Texas Department of Insurance (TDI) says about age, condition and roof age, how the rebuild figure and building codes come into it, what a past water leak can mean, and what to check on your own policy. Coverage varies by policy and by company.

The short answer

A newer home may cost less to insure in Texas, but age is one of several factors in the Texas Department of Insurance (TDI) Home insurance guide. The guide lists a home's age and condition among the things most companies consider when deciding on a premium, and says: "Companies can't turn you down just because of your home's age or value, but they can charge you more."

That TDI sentence covers two separate decisions. On whether a company will sell you a policy, TDI says age alone can't be the reason for a refusal. On what you pay, TDI says age can count against you.

Condition is a different matter from age. TDI's Insurance and your roof page says: "Your insurance company will inspect your roof when you apply for insurance. They may charge you more or refuse to insure you based on what they see." The home guide also says a company may nonrenew a policy if the house is in bad condition, that the company might instead require repairs before it renews, and that companies usually give at least six months to make them.

For the owner of an older house, this puts the attention on condition.

What actually moves the price

TDI describes the factors that affect a Texas home insurance premium on two pages, and a home's age is one item on each list. TDI's page How are your auto and homeowners insurance costs calculated? says insurance companies use many factors, that each company's premium formula is different, and that common factors for home insurance include the six in the first column below. The home guide gives its own list of things most companies consider when deciding on a premium.

On construction materials, the home guide says premiums are higher for houses built completely of wood and lower for houses built of brick or stone. The guide says this in its list of things most companies consider, so it may not apply at every company.

Of the six factors on TDI's cost page, two refer to age: the home's age and the roof's age and material. The other four (location, replacement cost, claim history and credit score) are not about the year the house was built. Because TDI says each company's premium formula is different, two houses of the same age may be priced differently.

What TDI says about roof age and coverage

Roof age can affect the kind of coverage a Texas home policy gives the roof, as well as the premium. As the roof page explains, some policies pay up to the full cost to repair a roof at current prices, which is replacement cost coverage, and some policies pay less if the roof is older or showing wear, which is actual cash value coverage.

Two TDI pages describe a change that can come with roof age:

• TDI's roof page. The roof page says: "As roofs age, some companies will switch to actual cash value. And if your roof is in poor condition, your company might not cover your roof at all."
• TDI's renewal page. Is your home policy up for renewal? says: "When your roof reaches a certain age, your insurance company might switch your policy from replacement cost coverage to actual cash coverage." The same page says that if the roof is in poor condition, the company might drop roof coverage altogether.

The roof page also reminds readers that "your insurance company won't pay for a new roof just because it's old or worn out." It suggests checking at renewal whether your roof coverage has changed.

An example in the home guide shows the difference. In TDI's example, a roof bought 10 years ago costs $10,000 to replace today and the policy has a $2,000 deductible. With replacement cost coverage, the company would pay $8,000. With actual cash value coverage, TDI says the actual cash value might be $7,000, so the company would pay $5,000 and the owner would pay the rest. These are TDI's example figures, used here as an illustration only. Your policy's terms, limits and deductible decide the actual result.

So two policies on the same older house can treat the same roof claim differently, depending on which kind of roof coverage each one has. TDI's roof page also suggests asking your agent whether the deductible for wind and hail damage is different from the deductible for other types of damage. Our guide to how the wind and hail deductible works in Texas covers that part.

Rebuild cost and building codes on an older home

On an older Texas home, the replacement cost figure behind the policy is worth checking alongside the age of the house. According to the home guide, replacement cost coverage pays to repair or replace your house and personal property at current prices. The guide defines the alternative this way: "Actual cash value coverage pays replacement cost minus depreciation."

The same guide says each type of coverage has a dollar limit and advises making sure you have enough coverage to replace your home and property after a total loss. It says most companies require you to insure your house for at least 80% of its replacement cost, and some companies require 100%. In the guide's list of things most companies consider when deciding on a premium, houses with higher replacement costs have higher premiums.

Building-code coverage is a further point to check. The home guide says most companies offer endorsements, or policy add-ons, and lists among the common ones coverage for extra construction or repair costs to meet local building codes, and for extra construction costs if your policy doesn't pay enough to rebuild your home. Your own policy shows whether either one is included and at what limit.

Coastal owners may have one more step. Per the home guide, if you live on the Texas coast or in Harris County on Galveston Bay, your home policy might not cover wind and hail damage, the Texas Windstorm Insurance Association (TWIA) sells wind and hail coverage for coastal residents, and you might need a home inspection by an engineer or a windstorm inspector. The guide says this about coastal homes generally, not older homes in particular.

Old plumbing, water leaks, and your claims history

TDI makes general points about water damage and claims history on a Texas home policy, and none of them is specific to older homes or old plumbing. The home guide has a table of common risks that most policies do and don't cover. A sudden and accidental release of water is on the side most policies cover. A continuous water leak and wear and tear are on the side most policies don't cover. The guide adds that coverages vary by company and suggests reading your policy or talking to your agent to be sure of your exact coverages.

On claims history, the home guide says most companies use the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history, and that CLUE reports show the claims history of people and houses, regardless of who owned them, for the last seven years. The guide says a company can charge you more or refuse to sell you a policy based on the information in your CLUE report. It also says you can get a free copy of the report each year and can challenge wrong information.

TDI's guide has a specific point about repaired appliance-related water damage. In describing when a company may nonrenew a policy, the guide lists filing three or more nonweather-related claims in three years, and then says: "The first two appliance-related water damage claims don't count if you've fixed the damage and it's passed inspection by a qualified inspector." This is about home policies in general and about nonrenewal for that reason. It is not a statement about older homes or about how a company prices a policy.

If you think a company improperly denied, canceled or nonrenewed your policy, the home guide says you may complain to TDI. The guide gives TDI's Help Line as 800-252-3439.

So, is a new home cheaper to insure?

A new home can be cheaper to insure in Texas, but TDI's pages do not say it always is. The home guide says you might be able to get a discount for a newer home or a home in good condition, and that each company decides what discounts to offer and the amount of the discount. An impact-resistant roof is on the same list of possible discounts.

Other factors on TDI's list have nothing to do with the build year. The guide says, of the things most companies consider, that premiums are higher in areas that have more storms or crime, that houses with higher replacement costs have higher premiums, that your premiums might be higher if you've had claims in the past, and that some companies use your credit score to decide what to charge you.

Put together, two houses can be priced differently for reasons other than age. Age is one input among several, and TDI says each company's underwriting rules are different.

What to do with this

These are steps you can take with your own policy. The facts inside each step come from the TDI pages named.

• Check the details on your policy. The renewal page suggests making sure the age of your house, square footage, construction type (siding or brick) and roof age are correct, because companies use these to decide what to charge you.
• Find out how the roof is covered. Ask whether the roof is at replacement cost or actual cash value, and whether that changes at a certain roof age. Both TDI pages quoted above say a company might switch as a roof ages.
• Ask about building-code coverage. It is among the common endorsements in the home guide, so check whether it is on your policy and at what limit.
• Ask for the reason if you are turned down. The home guide says that if you ask, a company must tell you in writing why it turned you down or didn't renew your policy.

Key facts

• TDI's Home insurance guide lists a home's age and condition among the things most companies consider when deciding on a premium, and says companies can't turn you down just because of your home's age or value but can charge you more.
• TDI's page How are your auto and homeowners insurance costs calculated? says each company's premium formula is different and names six common factors for home insurance: the home's age, roof age and material, where you live, the cost to replace the house, claim history and credit score.
• TDI's Insurance and your roof page says that as roofs age, some companies will switch to actual cash value, and that a company might not cover a roof in poor condition at all.
• TDI's Is your home policy up for renewal? page says a company might switch a policy from replacement cost to actual cash coverage when the roof reaches a certain age.
• TDI's Home insurance guide says most companies offer endorsements, and lists among common ones coverage for extra construction or repair costs to meet local building codes.
• TDI's Home insurance guide says you might be able to get a discount for a newer home or a home in good condition, and that each company decides what discounts to offer.
• TDI's Home insurance guide says, in its section on nonrenewal for three or more nonweather-related claims in three years, that the first two appliance-related water damage claims don't count toward those three if the damage has been fixed and has passed inspection by a qualified inspector.

Sources: Texas Department of Insurance, Home insurance guide, How are your auto and homeowners insurance costs calculated?, Insurance and your roof, Is your home policy up for renewal?. This page is general information, not legal advice.

Take the next step

Start with your declarations page, which TDI's Home insurance guide describes as the first page of your policy, with a summary of your coverages, dollar limits and deductibles. Confirm the roof age, find out whether the roof is at replacement cost or actual cash value, and check whether building-code coverage is there. Our guides to how to choose home insurance in Texas and what to do after a non-renewal go further on each.

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