Homeowners are always looking for ways to lower their living expenses, whether it be by refinancing to lower their mortgage costs, saving on energy expenses, or lowering home insurance premiums. Although home improvements & upgrades usually cost money to implement, some specific home projects can actually lower home insurance premiums. This can make the upgrade investments cost effective as they usually qualify you for insurance discounts. Below are 5 home improvement upgrades that can have a positive (lowering) effect on your house insurance costs.
Electrical Wiring Upgrades
Ensuring that your house’s electrical system is updated and up to standards can really please some insurance companies. Some agencies have been found to give discounts of up to 8% on home insurance premiums if the homeowner upgrades their electrical system (according to Consumer Reports).
Security System Upgrades
This should come to no surprise, but home insurance companies like the homes they insure to be as safe as possible. That means that if you upgrade your house’s security systems to make it safer you may very well be rewarded with lower home insurance costs! Please note that there may be a higher chance for receiving discounts if your security system is connected to an outside 3rd party service.
This may be one of the most expensive home projects a homeowner may incur. However, upgrading your home’s roof may have more benefits than just preventing leaks and structural damage. Home insurance companies can give large discounts for these upgrades too! Some reports have found that insurance companies gave up to a 35% discount on premiums after a roof upgrade, however, these discounts have also been seen as low as 5%.
Smoke Detector Upgrades
Something as standard as upgrading a smoke detector may not seem related to home insurance costs, but they definitely can be. Although usually required by some municipal bylaws, upgrades to a home’s smoke detectors can result in substantial savings on insurance. Some have seen discounts of up to 6% from this!
Plumbing (Backwater Valve) Upgrades
Plumbing, specifically backwater issues can be one of the most unpleasant things to happen to a homeowner. Besides the horrible smell, the costs and effort it takes to fix can be overwhelming. Because of this, it’s also important to keep your plumbing up-to-date. If there are any upgrades to do on equipment, cleanouts, venting and pipes themselves, do so in order to avoid even more hassle in the future.
The Bottom Line:
Our homes are usually the largest purchases we make in our lives, so it’s very important to have proper home insurance coverage. Unfortunately, sometimes home insurance can make a significant impact on budgets, so reducing home insurance premiums wherever possible is always a good idea to think about.
We hope the above tips have given you some ideas on how you may be able to lower your home insurance costs by completing specific home improvements.