8 Home Improvements That Can Save You Money On Insurance

What Home Improvements Can Impact Your Insurance?  

Do you have home renovations that you have been putting off? This is understandable, as renovations can be a large undertaking. However, they will be worth it. By making specific home improvements, you can protect the value of your home and may also lower your home insurance rate.  

Although updating your flooring to hardwood floors or master bedroom remodel would be nice, these home improvements will not impact your homeowners insurance premium. If you want to make home improvements to lower insurance, re-roofing your house, updating your heating system, plumbing and electrical, or installing a sump pump can achieve this goal.  

In some cases, home improvement projects have significant positive outcomes beyond aesthetics. Improving your home's value can lead to receiving a preferred policy premium.  Our homes are among the most important investments we make. It's a place for family and friends to relax and enjoy life. Investing in a home improvement project that pays dividends on value and insurance savings makes sense.  

Our Morison Insurance brokers have suggested some home improvement projects to keep your home in good repair and positively impact your home insurance premium.  

1. Update Your Heating System  

If your heating system is older and inefficient, insurers may be concerned about the risk of problems, such as breakdowns, that may result in claims. Higher risks translate into higher premiums and restricted coverage, and in some cases, you may find it challenging to find insurance coverage. Conversely, when risks are lower, you will receive preferred rates.  

Although this home improvement to lower coverage is a bit more costly, upgrading your home's heating system is a home renovation that can improve energy efficiency, reduce energy use and lower energy bills.  

The cost of a new furnace varies. Factors such as the size of your dwelling, the brand of furnace you purchase, and installation costs impact the final price tag. Do you use gas, propane, electricity, or oil? Switching from oil as a fuel source, for example, to another energy source, such as gas, may also help lower your policy premium. A new furnace can reduce your home insurance premium even if the source stays the same.

It is also important to note that many providers may not provide coverage if you have an oil tank that is 20 or more years old. This is because the risk of rusting and other degradations may lead to leaks. Even the smallest oil leaks, if not repaired, can result in significant spills. Oil leaks require environmental cleanup. Your insurer may also require that an oil tank is certified by Underwriters Laboratories of Canada or the Standards Council of Canada. Your insurance broker can provide professional advice if you have an oil tank.  

2. Replace Your Roof  

Many of us give very little thought to the roof over our heads. Your roof protects you and your family from rain, snow, and even the ravages of sunshine. Many don't think about the constant wear and tear our rooftops endure.  

Replacing your roof is one of the best home improvements to lower insurance premiums. Insurers know that a roof needing repair or replacement presents a substantial risk of water damage and, as a result, an increased likelihood of a claim. As mentioned previously, policy premiums may be higher when the risk of a claim is higher, and sometimes coverage may be restricted.  

How old is your roof? What is its expected lifetime? Is your roof covered with asphalt shingles, steel, tile, or another material? A typical asphalt roof may last up to 20 years. After that, replacement is almost certainly necessary. Recognizing that each situation is different, we suggest doing a visual assessment and checking your home's exterior to see if your roof needs repairs.  Has a tile moved or blown off? Are some shingles curling? These are signs of weathering that require attention. Worn or missing tiles can lead to leaks and should be repaired promptly. If you can't see your roof well from the ground, you may need a professional to assess its condition. If needed, get advice from a roofing professional.  

3. Upgrade The Wiring In Your Home  

Your home's wiring might not be as fun as installing a new pool or renovating a kitchen, but upgrading it is one of the best home improvements to lower insurance premiums. Electrical wiring is behind the walls, and as long as it works, most of us don't give much thought to it. Wiring is, however, a discussion-worthy topic for any homeowner.  

You probably don't need to worry about upgrading your wiring if you live in a newer house. Current building standards require home builders to follow established measures. However, if your home is older and the wiring has not been updated, it may present significant safety and insurance concerns.  

Homes built in the 1950s or earlier may have knob and tube wiring, which increases the risk of fire. Over time the wiring, knobs, insulators and other materials degrade. In many cases, knob and tube wiring risks mean an insurance company will not insure a dwelling until the system is replaced with wiring that meets present-day requirements. We recommend speaking with your broker if you have knob and tube wiring to know more about the insurance requirements, upgrades that may be necessary and how this home improvement will impact your coverage and pricing.  

If your dwelling has aluminum wiring which was used in the 1960s and '70s, you may want to consider a wiring upgrade. The Financial Services Commission of Ontario advises checking if aluminum wiring was installed correctly. Insurers may require confirmation of proper installation by a professional before providing coverage. Homes built today have copper wiring for its safety and durability.  

Another consideration is the amperage, or level of electrical service, in your dwelling. Do you have a 60-amp service? Older homes may be limited to this level of service. The problem with 60-amp electrical service is that today's appliances, and the number most of us have in our dwellings, are more power-hungry and, as a result, require greater amperage. If you regularly blow fuses or reset the breaker on your electrical panel, you may need to upgrade your service. The risk of electrical fire is increased from overheating and overuse. Insurers are aware that 60-amp service increases the risk of claims, and you can expect to pay a higher premium or be required to upgrade the service before insurance is provided. The standard for electrical service in homes built today is 100 amps. Due to size and electrical needs, some houses may even have 200-amp service. Discuss your situation with your broker, who can inform you how a service upgrade will impact your insurance coverage and costs. 

4. Upgrade Your Home's Plumbing  

From an insurance standpoint, water damage is a significant risk for your home and its plumbing. If you have old pipes made of materials that may leak, this can increase the risk of water damage. These increased risks can mean higher premiums due to the greater probability of claims.   

Older homes built around the 1950s may have galvanized steel pipes. Unfortunately, this material corrodes over time and can result in leaks. Homes built in the mid-1990s to late 2000s may have Kitec pipes made of polymer. These pipes have been known to crack, leak or burst.   

Due to these risks, insurers may require you to upgrade your plumbing system. For this reason, insurers may require the homeowner to replace galvanized or Kitec pipes with copper or plastic pipes installed in homes built today.   

Water leaks may occur due to clogs, corrosion, faulty connections and other issues. Leak detection devices can provide an extra layer of protection from damage due to water and are recommended by insurance providers. Devices that detect increased moisture and leaks alert you to these problems early so you can attend to them before they get worse. Some leak detection systems have an automatic shut-off valve to stop water leaks promptly.   

Find out what plumbing material is in your house, and your broker will advise on insurance coverage and required upgrades.  

5. Update Your Hot Water Tank  

If your hot water tank is over 15 years old, you may want to replace it because the likelihood of leaks and bursts increases. Insurance companies are aware of this, and it's one of the reasons that installing a new hot water tank is a home improvement to lower insurance premiums. If you install a tankless water heater, you can further reduce your water damage risk because your home doesn't have a large water tank.  

6. Install A Back-Flow Valve Or Sump Pump  

Back-flow valves and sump pumps can be worth their weight in gold when preventing water damage issues in your basement. They can also help you to save on your insurance.   

A back-flow valve prevents sewer water from entering your dwelling when the city or municipal sewer lines are overfilled. To keep sewer water out of your dwelling, install a back-flow valve. Insurance companies love these gadgets, and adding one of these is one of the best home improvements to lower insurance. Similarly, having a sump pump can prevent costly water damage in your basement, leading to a home insurance discount. These mitigate the risk of water problems, especially if they also have a battery backup feature, which means they will work even when the hydro service is disrupted. This can help to reduce your insurance premium.  

7. Install A Home Security System  

Being safe and secure in our homes is essential to everyone. It's important to insurance providers, too, because the more secure your home is, the lower the risk of break-ins that may lead to losses and claims.  

Installing monitored alarms is a home improvement that helps lower insurance costs and keep you and your family safe. Brokers can help you save money by offering discounts to homeowners with home security systems. Depending on your home and property details and the type of security system you have, savings may be between 2%-15%. Many systems allow homeowners to review security in their homes remotely. In addition to alarms and sensors, home security professionals can install video equipment.  

8. Build A Fence Around Your Pool If You Have One  

Having a swimming pool in your backyard has a lot of positives. Whether you use it for recreation or exercise, a pool can be a great addition to a backyard. If you already have one, you know the negative impact it can have on your home insurance costs. This impact comes from needing additional liability coverage for the increased hazards a pool creates and the increase in the replacement cost of your home. However, if this is your situation, a home improvement to lower insurance you can make is building a fence around your pool, stopping vulnerable people from accidentally stumbling into it. A fence should be at least four feet high to receive full benefits. You can add a no-slip surface, warning signs, pool cover, and railings.  

Let Your Insurance Broker Know  

Not only will these home improvements lower your insurance premiums, be a gold mine to prospective buyers, and increase your home's resale value for when you sell in the future, but these repairs could also help lower the cost of your insurance today. If you have made any home improvements, be sure to let your insurance broker know so that they can ensure your dwelling is protected correctly and your policy is up-to-date. If you would like to learn more about other home improvements or money-saving discounts that could lower the cost of your insurance, speak with one of our Morison Insurance brokers today.