Home Improvements That Can Reduce Your Home Insurance Premium

The general consensus among homeowners is that any improvements done to their home will raise the home’s value and at the same time lower the insurance premiums. While home improvements add to the overall market value of your home, the same can’t be said about home improvements and your insurance premiums. 

Certain improvements actually raise your home insurance premiums, while others save you money. In this article we will discuss what type of home improvements can lower your home insurance premium.

Contact Your Insurance Broker Before Beginning Home Improvements

You should always contact your insurance broker or agent about your plans of upgrading your home to see if the renovations will affect your policy in any way. Certain risks during renovations (i.e flooding or theft/vandalism) can increase your premiums, so it is good practice to check with your broker beforehand to determine if you have adequate coverage for the improvements being done. 

Premium-Reducing Home Improvements

Listed below are the most recognized home improvements that can lower your premium:

• Upgrading to an electric or gas furnace: the way you heat your home determines your premiums. Heating with oil, wood or a pellet stove increases the chances of a house fire and so it will directly increase your insurance premium as opposed to electrical heating. 

• Upgrading your electrical system: old wiring can become a hazard and cause an electrical fire due to overheating. Upgrading your wiring to a 100 amp system with modern wiring materials (i.e. copper) can reduce risk of a fire and so lower your insurance premiums. 

• Upgrading your plumbing: improving your plumbing from old lead piping to new plastic or copper ones reduces the risk of water damage in the case of clogged pipes.  

• Installing a sump pump and or a backwater valve: a sump pump system pumps water away from your home's foundation, and a backwater valve will protect your home from being flooded by keeping sewage from flowing into your home. These improvements are key in lowering your insurance premiums.  

• Upgrading your roof: your older roof can become a risk during severe weather and develop leaks which can further deteriorate the condition of your home due to water damage. An improved roof lowers the risk of damage to your home and your insurance premium. 

• Installing a security system: a modern home security system can lower your insurance premiums as it can deter and prevent vandalism and theft. If your neighbourhood has a higher crime rate, a security system is a risk-reducing improvement you should consider installing. 

• Upgrading to ‘smart home’ technology: smart home technology can alert you in real time through an app of an emergency situation occuring in your home (i.e. fire or flood). In the case of an emergency, timing is everything. With smart home technology you can lower your insurance premiums by decreasing the risk of a total loss of your home.  

If you would like to know more about what type of home improvements can lower your insurance premiums, please contact us today and we will gladly assist you.