Soaring insurance costs have left homeowners with some tough decisions to make. The average home insurance premium increased by more than 20% in 2023, and experts are expecting another 10% to 15% hike this year. In states like California and Florida, where homeowners face a growing number of wildfires, severe storms, and other natural disasters, major insurance companies have stopped offering insurance policies altogether.
To offset costs, some homeowners are signing up for risky, high-deductible policies, while others are choosing to not carry insurance at all. Neither solution is ideal. So, what can you do to manage these rising costs? One option is to make some smart home renovations. Here are a few ways you can lower your insurance premiums by upgrading your home.
Replace an Old Roof
One effective way to reduce your home insurance costs is to replace an old roof. Many insurance companies will give you a discount on your monthly premium if you have a new—or new-ish—roof. The lifespan of a roof can vary greatly depending on the material used: clay and cement tiles typically last for over 100 years, but you’ll only get a few decades out of asphalt and wooden shingles. If you don’t know how old your home’s roof is or what condition it’s in, get an inspection. It may require minor repairs that are easy and affordable to fix.
If your roof is near the end of its lifespan, consider replacing it. While the initial investment is high—installing a new roof can cost anywhere from $10,000 to $20,000 or more—it’s usually worth it. You’ll save on your insurance premiums and energy costs. Plus, if you plan on selling your house down the road, it’ll make your property more attractive to buyers.
Upgrade Critical Home Systems
Critical systems such as plumbing, electrical, and HVAC keep your home running smoothly and efficiently. Neglecting any of these systems can quickly become a safety hazard. Old or frayed wiring increases the risk of accidental fires, outdated water pipes run the risk of breaking, and a broken heating and cooling system will have you sweltering in the summer, freezing in the winter, and paying a small fortune on utilities.
Replacing these systems with modern versions, like low-flow faucets and energy-star-rated air conditioners, will reduce your water and energy consumption. These updates will also reduce your chances of having to file a home insurance claim, says Ted Olsen, vice president at Goosehead Insurance. “Many insurers will reward their clients with lower premiums or discounts as a result,” he says.
Environmentally friendly updates like installing solar panels, replacing outdated appliances with Energy Star-rated ones, and using recycled materials to replace old flooring can also lead to lower premiums, Olsen adds.
Add Security Features to Your Home
Insurance companies prefer to not have to pay out claims for damages and lost property, and many offer discounts to homeowners who install features designed to prevent those things from happening. Adding a burglar alarm that connects to a third-party monitoring service makes you a less risky customer in the eyes of an insurer. The same goes for fire and smoke alarms that connect directly to emergency services. Even something as simple as installing a deadbolt lock can lower your monthly premium.
If you’re interested in getting comprehensive security for your home, check out our list of the best home security systems for 2024.
Work with an Independent Insurance Broker
When it comes to finding the best insurance policy, working with a local independent insurance broker is your best bet. Independent brokers, like Vargas & Vargas Insurance, work with multiple insurance companies. This means they can shop around and find the best policy for you. Instead of being limited to one company’s offerings, they can compare options from several insurers to find the best coverage at the best price.
Independent brokers also provide personalized service. They take the time to understand your unique needs and circumstances, ensuring you get the right policy. They can offer expert advice on how to improve your risk profile, such as suggesting a higher deductible to avoid excessive small claims and setting up automatic payments to avoid late payments. They work for you, not the insurance companies, which means they’re dedicated to finding the best possible policy and rates for your specific situation.
Call Your Insurance Provider
Protecting your property is an intrinsic part of homeownership. After all, you don’t want to risk losing a several hundred-thousand-dollar investment to a freak storm, accidental fire, or any other unexpected event. Many insurance companies are willing to work with homeowners to find ways to reduce their coverage costs. Before starting a renovation project, contact your insurer to see what discounts are available and how much you could potentially save.
Remember, Vargas & Vargas Insurance is always here to help you navigate through these challenges. If you have questions or need assistance, don’t hesitate to call us at 617-298-0655. We’re committed to helping you find the right insurance policy for your needs.
For more information on insurance options and tips on maintaining a good insurance record, check out resources like the Insurance Information Institute and the National Association of Insurance Commissioners. These sites offer valuable insights and guidance.
Stay informed, stay covered, and stay safe!
