Making a Switch: Home Improvements That Can Lower Home Insurance Premium

Homeowners can improve their homes for multiple reasons - strengthening the house's foundation, replacing broken parts, or making it look more aesthetically pleasing. Whatever the reason, nothing beats improving your house to lower your home insurance premium, which is the payment you'd make in exchange for a home insurance policy.

With such a significant upgrade in your house, it's best to be informed about the different renovations that could lower your premium and renovations that don't. Moreover, such renovations are all listed below, so continue reading if you're curious as to what these may be.

Improvements That Can Lower Home Insurance

While not all upgrades can lower your premium, there are five significant renovations that you could try. Moreover, improvements that can lower home insurance tackle safety needs such as your security and fire system or your house's foundation, like your roof or plumbing. Overall, these improvements prioritize your security above aesthetics.

Adding a Security System

Although installing security systems can be costly, doing so offers the most straightforward way to reduce your costs. Not only this, but it could also lessen any possibilities of theft or vandalism and reduce your risk of loss for covered perils. Covered perils are a part of your policy that your company will reimburse you for damages.

Additionally, you could compare with Assurance and check out other insurance policy providers on their protective devices. The most common devices would be smoke alarms, door cameras, door sensors, and third-party monitoring systems. 

Nonetheless, being sure about your policy never hurts, so consider yours. Overall, you could think of added security with this new improvement, as you not only lower home insurance premium but also keep yourself safe. 

Fixing Your Roof

General wear and tear on your roof aren't eligible for reimbursement for most insurance policies. Moreover, neglecting your broken roof can lead to more complicated problems and even higher repair costs. With this, it's best to fix your roof once it becomes weak or leaky to avoid these problems altogether.

If your broken roof was from a sudden accident or damage from a natural disaster, you could be subject to a discount covered by your insurance. You could've been through a violent windstorm, a tree could've suddenly fallen onto your roof, or you could've been through wildfires. Whatever the reason, you're subject to an impact-resistant discount that qualifies you for a new study roof that forestalls your damage claims. 

Improving Your Fire System

Your fire system is another upgrade that keeps you safe from potential fires and decreases your insurance premium. 

In 2020, home fires caused a massive uproar in residential deaths, according to the National Fire Protection Association (NFPA), as incidents resulted in 2,230 civilian deaths and 8,600 injuries. Likewise, the NFPA found out that only 7% of residential homes had sprinklers, and only a few states require installation in new-home constructions.

Moreover, such high cases have pushed insurers to offer discounts between 10-60% on homes that are correctly installed with fire control systems. A new fire system also increases your home's value to at least 1% per square foot. Nonetheless, installing a sprinkler or improving your fire system is less of your priorities if it means putting your and your family's safety first.  

Replacing Old Plumbing

Some old houses still utilize outdated steel pipes prone to burst, which can lead to water leakage and, even worse, severe flooding. You wouldn't want this to happen in your home, so you should check your pipes and replace any old plumbing you may have. 

It would help if you also looked into your electrical fixtures. Old pipes are an issue, and outdated electrical wiring is too. Any broken wires can spark, producing fires and engulfing an entire house within minutes. 

Your outdated plumbing and electrical features need to go, and insurance companies mainly offer replacement discounts that range from 5% to 35% on your premium. Moreover, upgrading these features reduces the risks of making an insurance claim due to a disaster, thus reducing your premiums. 

Install Impact-Resistant Windows

In 2019, the United States faced hail damage as one of the leading property loss issues, at 34.3%. Although this issue may vary depending on the state that you're in, there's no denying that storms are an issue homeowners face. 

With this, it's advised to get impact-resistant windows to protect your windows against heavy storms and weather. You could also get one with roll-down shutter features to protect yourself from sunlight or heavy rain. 

Since these shutters absorb heat, they can quickly help with insulation and prevent sun damage to your interiors. Likewise, the insulation in these shutters protects you from the cold during heavy rains and hail.

Moreover, installing durable windows means your insurer offers you a discount of at least 15% on your annual premium. You could even get a more considerable discount if you're in a state prone to strong winds, storms, or hurricanes.

Improvements That Won’t

Although home improvements are eligible to lower home insurance, some upgrades aren't eligible for such. These could range from those added only for aesthetics, energy-efficiency, and those that extend your property.

Aesthetic and Energy-Efficient Improvements

You could try painting your walls a new color, repairing your cracked tiles, or even repaving your old driveway. However, these aesthetics aren't features that will reward you with a lowered insurance premium. Any upgrades are mainly done to increase your home's value or visually upgrade your rooms fall on you, so you can't expect insurers to offer you discounts. 

The same goes for efficiency upgrades that you want to do. If you're considering replacing all your lights with LED lighting since it makes a more energy-efficient home, you may expect a cut on your electricity bills but not on your insurance premium. Likewise, these changes are personal choices you want in your home and don't match your insurers' policy discounts.

Extending Your Property

If you want to add a garage or finish your attic or basement, you could do so - but you can't expect a lowered home insurance premium when you do. 

On the contrary, doing so will mean more insurance costs since you have square footage than you originally had. You must pay for additional coverage, including renovation and sewer backup costs.

Final Thoughts

Before you start upgrading your home, be sure to read your insurance policy and inform your insurer of your choices. Doing so ensures that all the home improvements you're considering make you eligible for a discount. Overall, talk with your insurer first before making a switch!