Home Upgrades That Can Lower Your Home Insurance Costs
If you are considering a remodel or upgrading your home, you should consider your return on investment to the improvements you are hoping to make. One way that your effort may save a bit of money is through lower insurance premiums. Certain home improvements can actually shave money off of your insurance costs.
Here are a number of upgrades that can lower your home insurance costs:
Home security system
Insurance companies love monitored security systems as they help prevent burglars from breaking into your house and help stop vandalism. These systems alert the police or fire department when a fire or break-in is detected which can help reduce or prevent the loss, saving the insurer from having to pay out on a claim.
Home security systems are fairly affordable these days and the monitoring can cost as little as a dollar a day. Once the system is installed, contact your insurer with the details and ask them to add a home security discount to your policy. The savings will vary by insurer but expect to save 5 to 10 percent.
Storm resistant windows
Adding storm or impact resistant windows can reduce hail and wind damage which are huge drivers of homeowner insurance claims. While these windows tend to be more expensive than a standard window, your insurer will most likely offer a discount once they have been installed.
If you live in an area where hurricanes and severe weather is common you may want to consider also adding storm shutters. Insurers offer discounts for shutters that help protect your windows during a storm. While storm shutters can be pricey, they often result in a major discount, contact your insurer before having them installed to make sure the discount is worth the cost.
Emergency water shutoff
Flood damage from a storm is excluded from most standard homeowner policies but water damage that occurs due to a leak or broken pipe is covered. There are now smart home devices that can be installed on your water lines that will shut the water off is a leak is detected. Some devices will also notify you of the leak via your smartphone.
These devices can help prevent serious water damage which reduces an insurers risk. Discounts will vary but they can be substantial. Contact your insurer before having these devices installed to make sure your insurer offers a discount for these type of safety devices.
New Roof
Depending on the age and condition of your roof, replacing it with impact resistant roofing materials can result in a dramatic discount on your homeowners insurance. However, the cost of the roof can be substantial, so this tip only makes sense if you are in the process of replacing your roof already.
If your roof is reaching the end of its useful life, consider replacing it with impact resistant materials which will not only protect your home but also result in a significant discount on your homeowners insurance premium. Check with your insurer to verify they offer a discount and if they require any specific roofing materials.
Hurricane resistant doors
If you live in an area where hurricanes or severe weather is common you may want to consider replacing your exterior doors and garage doors with hurricane resistant doors. Again, this tip may not make financial sense unless you are already thinking about replacing your doors and garage doors. Impact resistant materials help prevent damage which reduces the chance you will have to make a claim after a storm.
Check with your insurer about a discount for impact resistant doors as well as any brands they recommend or require.
Other home systems
If you live in an older home that has not been updated in decades, replacing any of the major systems in the home can result in a big discount on your homeowners insurance. Older electrical and heating systems can increase your chances of a home fire or even flooding due to a broken or failing pipe. Replacing an ancient HVAC system or upgrading your electrical not only makes your home safer, but it will also reduce your homeowners premium.