3 Home Improvements That’ll Cut Costs on Your Homeowners Insurance

Planning home renovations can be a whole lot of fun, but it can also bring headaches and drama. For better or worse, renovations can directly impact the overall value of your home and may present certain liabilities that can affect your homeowners insurance. If improperly handled, home improvements can be dangerous and costly; but if done correctly, can increase the value of your home and lower your insurance premium.

Here are three improvements you should consider for your home.

Roof Replacement

While not the most aesthetically alluring aspect of home renovation, having a solid roof is one of the most important aspects of a well-kept home. So much so that a shoddy one could stop a sale dead in its tracks. As far as resale value goes, according to Remodeling Magazine’s Cost vs. Value Report, a new roof can increase the value of your home by nearly $12,000.

“Roofs are huge right now in the insurance industry,” Teresa Taylor, personal lines sales and service of Peabody Insurance in Holly, Michigan, told the Tri-County Times, a Michigan newspaper. “With all the storms and damaging weather, some policies will give credits for new roofs, for up to five or 10 years. If you have a new roof, you should certainly let your agent know.”

It will vary by provider and where you got your policy, since some will sell you a policy on behalf of the actual insurer but may have their own underwriting and adjustments to add in. As a rule of thumb though, you can expect to save somewhere between 5 and 10 percent on your premium.

Installing a Standby Generator

Family comes first in any situation. In the event of a major storm or another emergency that results in a power grid failure, what are you going to do? If you don’t have a standby generator installed, you’re going to be left in the dark or forced to leave. Standby generators are a cost-effective way to protect yourself against any emergency situations but will also help keep your insurance premiums low.

Insurance companies know that houses with standby power generators are going to be more secure during times of emergency than ones without. When your lights are on when everyone else’s is out, insurers know that you are less likely to make a home theft claim and view standby generators as a theft-prevention investment, which can lower your monthly or yearly rate.

Put a Fence Around the Pool

If you own a pool, you are probably aware of the additional coverage your insurance premium gained because of it. Putting a fence up is a smart way to not only protect your kids but save a little on your insurance bill. According to PoolSafely.gov, drowning is the leading cause of unintentional death for children ages 1-4. As you might imagine, insurance companies don’t look so favorably at the addition of a pool to your home—in fact, some states (Virginia, Maryland and North Carolina) have made it a requirement to have a fence around your pool.

If you’re looking to save a little bit from your next renovation while upping the value of your property, consider these three home improvement projects.

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