Here are just a few examples of home updates that could impact your insurance needs.
Replacing Your Roof
Many people give little thought to their roof until it is damaged. This can be a costly mistake. According to the Insurance Information Institute, the average cost for property damage from wind and hail between 2015-2019 was $10,801.
Older roofs are more likely to suffer damage from inclement weather. As a result, most insurance companies consider homes with aged roofing as being high risk and charge higher premiums accordingly. Having a new roof could not only save you from suffering expensive damage, but also lower your monthly insurance costs.
Updating Your Heating System
Updating your heating system can be a very smart investment. Heating typically accounts for 29% of utility bills, according to the Department of Energy. Having a more efficient heating system can not only positively impact monthly utility bills, but a more efficient system could mean reducing your need to have supplemental heating sources. Between 2014 and 2018, most home heating fire deaths involved stationary or portable space heaters.
Creating More Living Space
Whether you are converting your garage into an extra room or putting an addition onto your home, you are creating more livable space and could be increasing your home’s value. Failing to report your renovation to your insurance company to adjust your coverage could leave you underinsured. It may cost you a few dollars more on your premiums each month, but inadequate coverage is risky.
Remodeling Your Kitchen
One of the most complicated and expensive home upgrades can be kitchen remodels. According to Home Advisor, the average kitchen remodel costs $25,655. Prices run from $75 to $250 per square foot, depending on the size of the space, the quality of materials, and the extent to which the footprint of the room has changed.
According to Remodeling Magazine’s 2018 Cost/Value report an updated kitchen can not only make your home more livable, but can increase its value by anywhere from $17,000 to $67,000 depending on the features installed.
Increasing the value of your kitchen and appliances impacts the replacement cost of your home, so you should adjust your insurance coverage appropriately.
These are just a few of the more popular home renovation projects that can impact your insurance costs. Others, such as installing a pool or alarm system, can have an even greater impact on your insurance premiums and needs.