It’s daunting to commit to a major home renovation. The first question most homeowners want to know before proceeding is, “What’s the damage?” And it’s true: Updates around the house often represent a significant financial investment. But it’s important to address them in a timely manner, otherwise that initial price tag could multiply if an accident occurs due to an outdated system.
The good news is that some home renovations can actually earn policyholders a discount on their insurance premiums. According to the Insurance Information Institute, shopping around for competitive homeowners insurance quotes and making your home more resistant to disaster or invasion are some of the top ways to lower your insurance costs.
Let’s take a closer look at four major home updates, how much they cost and how they may affect your insurance policy.
Replacing Your Roof
Having a strong roof over your head is important for peace of mind and protection against inclement weather. Reinforcing or replacing your roof with certain durable materials may earn you a policy discount. The cost of roof updates depends on factors like:
Size: Each 10-foot x 10-foot square increases the total.
Pitch: Steeper is generally more expensive because it requires workers to exercise extra care.
Material: Asphalt runs $120 to $400 per square, slate runs $800 to $4,000 per square, etc.
Updating the Plumbing
An outdated plumbing system heightens the chance you’ll have a water-related accident and need to file a subsequent insurance claim. HouseLogic estimates replacing the pipes in a two-bathroom, 1,500-square foot home costs anywhere between $4,000 and $10,000. If you bought an older home with copper supply pipes approaching their 75th birthday, it may be time to investigate your options before a crack opens up and floods part of your home.
Updating the Electrical System
The same principle applies to your electrical system: The older the system, the higher the chance of a fire or other malfunction. At some point, your wiring will require an update. The total cost really depends on the size of your home, the number of outlets and the service amps. One estimate quotes an installation in a 1,600-square foot, two- to three-bedroom home to be between $2,500 and $5,000.
Installing a Security System
Besides damage from an accident or natural disaster, another common homeowners insurance claim is theft. While security systems typically cost between $250 and more than $1,500 to install—plus a monthly fee between $10 and $100 for professional monitoring—they can catch a home invader in the act, preventing burglars from stealing priceless items and valuable possessions. The cost depends on how many components are involved, including motion sensors, cameras, alarms, lights and more.
Like all home renovations, these four major updates come with an up-front cost. But prudent monitoring and replacement of outdated home systems can prevent an even costlier (and more dangerous) incident down the road.
Making key home renovations and comparing homeowners insurance quotes are two of the best ways to ensure you’re getting the coverage you need for the best rate around.Visit CoverHound today for a fast, free quote!