Home Renovations & Homeowner's Insurance
Homeowners should always be looking for ways to increase their home value. However, sometimes this can be a double-edged sword. Some home renovations that will increase its value can increase your homeowner’s insurance policy as well. That being said, sometimes the trade-off is worth it. These renovations are those, such as:
Replacing flooring with more expensive materials, such as tiles and hardwood over vinyl. Because the cost to replace these materials is higher your policy may go up. Makes sense right? One other example of this is granite countertops overlaminate.
Solar panels. We love the idea of being more environmentally friendly and saving money on your monthly utility payments. However, these can be costly to repair if damaged and can increase your premium.
Home additions and basement finishings are another way that renovations increase home value and homeowner’s insurance. This can increase the home’s square footage and therefore there is more to be insured. Thus, increasing your homeowner’s policy.
Now, let’s talk about some home improvements that increase your home’s value and lower your homeowner’s insurance policy rates.
Replacing your roof: This will lower your insurance rates because it will be less likely to have any damages because of new materials. The older your roof gets, the more it deteriorates and becomes more likely to have problems. One other thing to consider is the type of material you put on. Upgrading to more durable materials, such as metal or slate can also save you money in more ways than one.
Upgrade your wiring: If your home has outdated wiring then upgrading to newer can save you money and it’s safer. It will be less likely to cause fires.
We hope this helps you on your remodeling journey of your home. It’s always fun to upgrade and design but hopefully this can help you decide which materials can best serve you and your wallet in the long run.