As a homeowner, you want to cut costs as much as you can before they accumulate. From trying to find auto insurance to bundle with your home insurance to maintaining a decent credit score, there are innumerous ways to save on coverage.
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Home improvement is another expensive (but necessary) cost we face when owning and taking care of a house. What if we told you you could use repairs and replacements to your advantage? If your home needs to be remodeled, there’s a way to do it that could lower your insurance costs.
Put on a New Roof
“The roof is probably the single biggest factor affecting your policy,” Jim Towns, an Allstate insurance agency owner, stated. A new roof can save you up to 20% on your premium, even more, if you’re located in areas known for hurricanes or other storms that damage roofs.
Most policies cover roofs, but they will base it off whether the roof is worth protecting. Get your roof inspected, the age and condition it is in will determine how much coverage you will receive, if at all. Insurance companies are more likely to dish out money for newer roofs, especially when it’s reinforced against storms and damage.
Upgrade Kitchen and Bath
This renovation depends on what the coverage includes. Spending nearly fifty thousand on granite countertops will cost more for the insurer to protect, which will make your premium go up. However, updating your electric or plumbing systems may help lower the risk of damage or electrical fire. This may make you eligible for insurance discounts.
Install Smart Home Devices
Smart homes use the Internet of Things (IoT), which are devices connected to the internet and your smartphone. These gadgets have the potential to make your home safer and help you maintain things like thermostats. With a data feed from your home, certain insurance companies will reward you for being vigilant about the state of your home.
Many insurance providers offer discounts and rebates for installation and devices designed to keep the house safe. Here are some smart home devices that may reduce your home insurance rates.
Wireless Security Systems
A smart security system is one of the best tech investments you can make for your home and your insurance company. Not only does it encourage your insurers to reduce your premium because you’re less likely to be burgled, but there are fewer chances of you making a claim in the first place.
Smoke Detectors
Smart smoke detectors send mobile alerts, sound sirens, and detect the severity of a hazard and suggest appropriate action. These devices work great injunction of other fire prevention methods, and insurance companies appreciate it.
Water Sensors
Water damage is expensive, but smart water detectors can prevent and reduce their risk. It is also one of the most common and controllable claims, so insurance companies will reward you for taking preventative measures against it. Smart water devices have an app and will send you notifications. Then, you can turn off the water in your home, no matter where the distance.
Smart Locks
Smart locks are another security measure to help you protect yourself from burglary. The device allows you to lock or unlock your doors from the touch of a button on your smartphone. They can work alongside your current locks, and you can save a little on your insurance premiums and rebates.
Before You Upgrade or Buy a Home
As a policyholder, renovating parts of your home means updating your policy as well. To protect the full value of your home, you will need to update your home insurance about the renovation. When notifying your insurers about your home improvement plans, make sure that you:
- Verify that your contractor has insurance coverage
- Keep records and receipts
To guarantee that you will earn a discount on your premiums, talk with a representative to see what incentive programs they have, or what projects qualify for a price cut. It would be best if you also gave some thought about your insurance when you are buying a home. What features it has and its location can influence how much (or how little) you pay for insurance every year.
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