Home renovations can lower home insurance rates. A good way to look at it is that if you are taking steps to make your home better and safer, you may also reduce the chance and frequency of a home insurance claim. Adding a security system is an example of a home improvement that can lower your home insurance premiums with discounts because you've reduced your risk of theft, a peril covered by your home insurance policy.
But not all home improvements or renovations lower home insurance rates. And the implications of certain improvements can be twofold when more durable, lower-maintenance materials cost more to replace if damaged. In addition, home improvement projects like adding a room, remodeling your kitchen or bathroom, or finishing your basement will all naturally increase your Home's replacement cost and, therefore, your annual premium. Let's review the ones that can best save you money!
Home Improvements to Lower Insurance
Replacing your Home's roof
Knowing when and why you should replace your roof is essential to owning a home. It also has one of the most significant impacts on your home insurance rates. It's not an inexpensive renovation and may not be as gratifying as a new kitchen, but it provides valuable peace of mind and protection to your Home. Your Home's roof is its first line of defense against severe weather, and Virginia has its share of wind storms and heavy rain!
Roofing materials also have an impact on home insurance rates. Metal and tile roofs cost substantially less to insure than homes with more standard asphalt or wood shingles because they have a longer lifespan.
Replace your Home's exterior siding
Your Home's siding is one of those renovations with caveats to insurance rates. Vinyl siding with interlocking edges is the most popular construction exterior, and you can upgrade it with durable fiber-cement material to reduce your premium. Brick is a durable option but can cost more to replace when damaged, so it often costs more to insure.
Upgrade your home systems
Home systems, such as plumbing and electrical, are a prominent cause of accidental fires and water damage, two of the most common homeowners insurance claims. So makes sense to consider modern upgrades to improve your family's home safety and reduce insurance rates.
If you buy or live in an older home, electrical upgrades such as replacing knob and tube or aluminum wiring with copper can significantly save home insurance rates. Likewise, upgrading aging plumbing pipes and utilizing water detectors can reduce the chance of costly water damage claims and your premium. Upgrading your Home's HVAC system can save you money not only on your home insurance but also on your heating and air conditioning efficiency and electric bills.
Improve your home security systems
Savings for improvements in your home security goes beyond burglar alarms and deadbolts. Some home insurance carriers offer generous discounts for automatic whole house sprinkler systems and fire alarms that ring at monitoring stations or the local fire department. These monitored systems can be pricey, and not all qualify for a discount. Find out what kind your insurer recommends, how much the device would cost, and how much you'd save on premiums as part of the shopping process.
Northern Neck Insurance offers discounts for security and fire prevention systems:
- 2% Smoke detectors and deadbolts
- 2% local fire alarms
- 5% central station alarms
Does Homeowners Insurance Cover Home Renovation?
It's essential to inform your insurer about any improvement to make sure your home insurance covers your home project. Contact your local Northern Neck Insurance independent agent to inquire about other home insurance discounts and coverage bundling. Even if your home renovation project doesn't save you money, you want to be sure any increase in your home's value is protected in case of an insurance claim.
Learn more about homeowners insurance in Virginia >
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