Home Improvements That Can Lower Your Insurance Costs
If you want to save money on home insurance, you might want to think about making these four changes to your home.
After a while, you might want to think about making changes to your house. Improvements to your home make it more comfortable and may, in some cases, lower your insurance costs.
But some changes to your home can actually make your insurance rates go up. Find out what kinds of changes you can make to your home that will lower your insurance costs.
4 changes you can make to your home that can lower your insurance costs
Some improvements, like replacing your roof, can make it less likely that you’ll have damage to your house. By making your home less dangerous, you might be able to save money on your house insurance. Before making any changes, check with your insurance company to see if there are any discounts you could get for updates.
Putting in a security system at home
If you install a security system in your house, you may be able to get lower insurance rates because your home is less likely to be broken into or stolen. Whether or not your insurance company will lower your rate depends on the type of system you put in, your policy, and whether or not the alarms go straight to a dispatcher instead of just you.
Getting your home’s features up to date
Upgrading your home’s systems could lower your home insurance costs and even make your home worth more. Check your electrical system, plumbing, and heating, ventilation, and air conditioning (HVAC) to see if they need to be updated, and ask your insurance company if it gives discounts for home changes.
Adding water leak monitors or a sump pump could also help you get lower insurance rates, since these things make it less likely that you will have to file a claim for water damage. Smoke alarms, fire extinguishers, storm shutters, and other safety upgrades can also help reduce the amount of damage done by a fire or natural disaster.
HomeGuide says that the average cost to change the wiring in your home is between $10,000 and $30,000. Before you decide to upgrade, think about the costs and benefits.On the other hand, it only costs around $1,000 to install a water pump.
Getting a new roof
If you live in a hurricane-prone area, replacing your old roof could help you save money on your renters insurance. This is because a new roof will protect your home better from wind damage and leaks.
Most of the time, newer roofs have better materials and newer features. If you replace your old roof with one that is more likely to hold up in a storm or fire, your home insurance rates might go down. Depending on the size of the roof and the materials used, you can expect to pay between $5,700 and $16,000 to repair it.
Using technology to make homes smart
Things like doorbell cameras and lights that turn on and off on their own can help you protect your home and save money on other costs. Plus, you can keep an eye on things while you’re away and act quickly if something goes wrong.
Ask your insurance company if there are any savings for adding smart technology to your home. On average, it will cost about $835 to turn your house into a smart home. If you have smart home gadgets and a third party keeps an eye on them, your regular costs may be higher.
Not all changes to a home lead to lower insurance rates. In some cases, your insurance costs might go up because you have more risk or because the market value of your home has gone up. Here are some changes you could make to your home that could cause your insurance rates to go up.
Your home’s legal risk goes up if you have a swimming pool. Most insurance companies see pools as a safety risk, so you might have to pay more for your insurance after getting one. The National Association of Insurance Commissioners says that some insurers might even refuse to cover your home if it has a pool.
You might be surprised to find out that your insurance company might not cover your home office and its tools. Even if it does, it doesn’t always cover a lot. You might need more coverage, which can cause your insurance rates to go up.
Adding something to your house
Building an addition usually makes your home worth more, which could cause your insurance rates to go up. This is because the extra square footage makes it cost more for your insurer to rebuild your house. You probably won’t need a new policy, but your coverage limits might need to be raised.
How much your homes insurance costs depends on
How much you pay for home insurance depends on a few common things, such as:
The size of your home, measured in square feet, is one of the main things that affects how much your home insurance costs. Most of the time, it costs more to replace and rebuild a bigger home, so it will usually cost more to cover.
Location is another important thing that insurers think about when they decide how much to charge for insurance. Some ZIP codes may be more likely to have bad weather, theft, or flooding, so insurers take that into account when figuring out how much your insurance will cost.
Age: Older homes may cost more to insure than newer ones, especially if their systems aren’t as good as those in newer houses. When setting home insurance rates, insurers generally look at things like how old the electrical wiring, plumbing, roof, and other things are.
Other things: There are a lot of other things that can affect your home insurance rates, like having certain dog types, a swimming pool or trampoline, a home office, or anything else that could be seen as a risk.
There are other ways to lower the cost of renters insurance
Don’t worry, there are plenty of other things you can do to lower your insurance costs, such as:
Make your insurance higher. If you’re ready to pay more out of pocket, you could get lower rates. Also, if you pay your payment once a year, you might get a discount.
Compare prices. Use websites that give you insurance quotes to compare companies and find the best deal on your coverage.
Bundle your insurance plans. Think about getting insurance for both your home and your car. When you buy more than one policy from the same company, many of them will give you a deal.
Get a good credit score. Most insurance companies look at your credit score when deciding how much to charge you for insurance. If your score is high, you might be able to save money on your payments.
Make other changes to your home. Upgrades that don’t cost much, like solar panels, a water shut-off device, or a home video system, can help you save money on your insurance.
When you make changes to your home, it’s smart to let your insurance agent know. Some changes could make your home worth more, which would cause your premiums to go up. Your rates might go down if you make other changes, especially ones that protect your home from bad weather or make it safer.
Should you tell your insurance company about changes you’ve made to your home?
Yes, you should let your insurance company know about any changes to your house. Home improvements often change a home’s value and risk level, which could change how your insurance company writes your coverage.
Will my homeowner’s insurance cover fixes or renovations?
Most homeowner’s insurance won’t pay for repairs or changes that are done regularly. Most of the time, insurance companies only cover things that are damaged by things like natural disasters, vandalism, and stealing.