You love your home, taking delight in its coziness and charm. Sure, it’s starting to show its age here and there, but it still has a lot of life left to give. That turn-of-the-century plumbing that gurgles in the night… it’s like a free white noise machine, right? And that electrical system that occasionally flickers when it’s windy out… it just makes watching horror movies even more spooky. And your furnace that barely seems to raise your home’s temperature but boosts your monthly heating bill just gives you and your family more chances to huddle together holding hot chocolate during the holidays, right?
Unfortunately, that’s not how your insurance company sees it. Remodeling certain aspects of your home not only freshens up your living space, but it can also earn you discounts on your monthly premiums (and save you the headache of dealing with a messy or dangerous disaster).
Will updating fixtures, appliances and home systems lower your insurance costs? Yes, if you pick the right projects to pursue. Here are a few examples of how you can get the best of both worlds when it comes to home remodeling.
Reduce Risk, Reduce Premiums
The newer a certain appliance or system in your home is, the less risk there is that it’s going to give out one day and prompt you to file an expensive claim. Let’s say you’re heading down to the basement to finish up another cycle of laundry. As you bend down to scoop some fluffy linens from the dryer, you see a puddle forming behind the washer, near the wall. Thinking it’s a minor leak, you wait a few hours to call a plumber. By that time, your home could actually be in structural (and financial) danger!
According to the Insurance Institute for Business & Home Safety, plumbing supply system failures cost, on average, $5,092 per incident after the deductible. And this is not just an issue during winter like many homeowners assume: 65 percent of these accidents stem from material failure (compared to only 18 percent from frozen pipes). Thus, a renovation like investing in a new set of pipes could stave off a costly homeowner’s insurance claim that raises your premiums. Plus, you’ll boost your peace of mind knowing that your new plumbing is less likely to wear out and spring a leak anytime soon.
The same principle applies for other important home systems. As the Insurance Information Institute suggests to homeowners looking to reduce their premiums, “Consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.” You’ll find that when you go to compare homeowners insurance, your monthly premiums could be significantly lower, helping to offset your initial investment.
Storm-Proof Your Rooms
Do you live in a storm-prone area? Then you have a great opportunity to make a relatively simple upgrade that’s functional—and gives your home a fresh new aesthetic. You can potentially lower your homeowners insurance premiums by replacing your current exterior entry points with storm shutters and doors. However, you’ll want to make sure they’re professionally installed and certified to get the discount. You’ll also likely have to provide the receipts or other proof of the professional work and products to your insurance company; otherwise they might think that your definition of “storm windows” means nailing some plywood over the opening and calling it a day.
Remodeling certain systems in your home can earn you discounts off your insurance premiums and make your house more functional overall. It also helps you go about your life confidently instead of fearing that the worst could happen at a moment’s notice. The key is to explore various insurance options and confer with a qualified professional before jumping into any big projects.
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