Most homeowners spend a big amount of money each year on DIY projects, renovations and home repairs. Homeowners may be updating their existing homes to better fit the needs of their family, hoping to increase their home’s value in a hot housing market, making necessary repairs to maintain the condition of their properties or more resilient to withstand the wrath of Mother Nature. While a remodeling project can make your space your own or increase your home’s resale value, you should consider how these home improvement projects affect your home insurance coverage limits and homeowners insurance rates.
In other words, certain home improvements like a new roof, wind or impact-resistant windows, or upgrading internal systems like your electrical and plumbing may land you lower policy premiums. Here are some housing upgrade ideas that can save you money on homeowners insurance.
- Installing a home security system
Home insurance policies generally cover theft as well as damage from vandalism. A home security system reduces the chances of either type of damage occurring. Many systems also include other types of monitoring, such as fire detection, and the alarm company can take swift action to alert the appropriate authorities when something goes wrong.
Because a security system can protect against many common losses that result in insurance claims, adding one can lead to a big drop in home insurance costs.
- Upgrading windows
Storm or impact-resistant windows reduce the likelihood of damage by wind and hail, which are two leading reasons for homeowners insurance claims. Adding roll-down storm shutters also lessens the chances of damage. This type of upgrade will have the biggest impact on premiums for homeowners who live in areas that are routinely affected by hurricanes or windstorms.
- Adding an emergency water shutoff device
While home insurance policies do not cover flooding from weather events, they do pay for damage resulting from water leaks in the home. Some examples of this are a leaking refrigerator line or damaged pipes.
Homeowners can install devices that detect when water is leaking and shut off the water supply, limiting the damage. Since these devices reduce the likelihood of serious water damage occurring when something goes wrong, they can result in a significant reduction of insurance premiums.
- Putting on a new roof
A new roof could reduce a homeowner’s costs for a few reasons, depending on the situation.
If the property had an older roof that was replaced with a newer one, the policyholder could qualify for a roof age discount. For example, impact-resistant roofing materials help protect against hail and lightning, which could bring down the cost of the home insurance policy.
- Upgrading doors
Hurricane-resistant exterior doors and garage doors can have a similar effect on reducing damage claims as a new roof or impact-resistant windows. While these upgrades can be expensive, they can reduce the premiums paid over time by making damage to a home less likely to occur.
- Improving other home systems
For homeowners with older homes, updating the electrical and heating system can reduce the chance of fires or flooding. This, in turn, can lead to reduced home insurance premiums. It can also cut energy costs, so it can pay off for homeowners in two ways. That said, like other improvements, updating these systems can be expensive.
Inform your home insurance company of any improvements
If you recently made improvements to your house or made it safer in any way, be sure to contact your home insurance company to see if you’re eligible for any rate reductions. It’s important to note that you don’t have to wait until policy renewal to do this. Your insurer is able to adjust your rates in the middle of your policy term. If you’ve taken steps to improve your home, make sure you’re getting credit for it with lower home insurance premiums.
For a homeowner who wants to make their home a nicer place to live, these upgrades could potentially accomplish that task while also making the property safer — and cutting insurance premiums over the long term. Bear in mind that not every home improvement that was made during your latest remodeling project will result in homeowners insurance savings. To know whether your planned home upgrade will reduce or increase your insurance rates, contact or email ONYX Insurance Brokers now. We are always willing to assist you on your insurance needs.
