Whether to enhance their living space, boost property value, or strengthen their home against severe weather, homeowners invest thousands each year in renovations and repairs. But did you know, certain upgrades can also lower your homeowners insurance costs?
While remodeling can personalize your home or increase resale value, it’s essential to consider how these changes impact your home insurance coverage and rates. Some improvements like a new roof, impact-resistant windows, or updated electrical systems can lead to lower insurance costs.
Here are the best home improvements that save money on insurance and how they help.
- Replace Your Roof
A new roof can cut insurance costs in several ways:
- Roof age discounts for replacing an old roof. Old roofs pose a higher risk and raise insurance rates.
- Impact-resistant materials that withstand hail and wind may qualify for additional savings.
- Update Electrical, Plumbing & HVAC Systems
Older homes with outdated wiring or plumbing face higher risks of fires and water damage. Upgrading these systems can:
- Lower home insurance rates by reducing claim risks.
- Improve energy efficiency, saving on utility bills.
- Install a Home Security System
Most home insurance policies cover theft and vandalism. Adding a monitored home security system reduces these risks and many systems include fire and water leak detection, further minimizing potential damage to your home.
Why it lowers premiums: Insurers often offer discounts for security systems since they decrease the likelihood of costly claims.
- Upgrade to Impact-Resistant Windows
Storm-proof or impact-resistant windows reduce damage from wind and hail, two leading causes of homeowners insurance claims. Roll-down storm shutters add extra protection.
Best for: Homeowners in hurricane-prone or high-wind areas.
- Add an Emergency Water Shutoff Device
While standard home insurance doesn’t cover flood damage, it does protect against leaks from burst pipes or appliance malfunctions if they aren’t maintenance related (see your policy for details on your exact coverage). An automatic water shut off valve detects leaks and stops water flow, preventing extensive damage to your home.
Insurance benefit: Fewer water damage claims mean potential premium reductions.
- Strengthen Exterior Doors
Hurricane-resistant doors (including garage doors) reduce storm damage risks, similar to impact windows and reinforced roofing. Though costly upfront, they can lead to long-term savings.
Notify Your Insurance Provider After Improvements
Did you recently make your home safer? Contact your insurance company or agent because you may qualify for discounts.
Final Thoughts
Not all renovations lower insurance costs, but safety-focused upgrades can reduce premiums, qualify you for discounts, all while enhancing your home’s resilience. The goal of your renovations should be to prevent future claims and in turn keep your premiums as low as possible.
Want to know if your project qualifies for savings? Contact ONYX Insurance Brokers today for a personalized review of your policy and potential discounts.
