Home improvement projects make your house more comfortable and may increase its property value, but they can also affect one’s homeowners insurance rates in some surprising ways. While some renovations can reduce your premiums, others may drive up coverage costs. Knowing how improvements might impact your rates will help you avoid unpleasant surprises and, perhaps, take steps to minimize the impact.
How House Updates Impact Homeowners Insurance Rates
1. Installing a Pool
Owning a swimming pool is a lifelong dream for many people, but those fun summer days come at a cost. Installing a pool raises your property’s value, which means you’ll need to increase coverage. Swimming pools also present a hazard to neighborhood kids and pets, so you may also need more liability coverage. Installing a fence around the pool can reduce the risk and the impact on your premiums.
2. Replacing the Roof
The roof is the single most expensive feature on a house, so most insurers are willing to offer a discount if you use advanced materials resistant to high winds, hail, or fire. Before choosing your new roof, ask your agent which products will lower your premiums.
3. Building a Home Office
If you’re converting an extra bedroom or den into an office, be aware that your homeowners insurance may not cover computers, tools, and other business property. Your liability coverage may also treat clients and employees differently from other guests so you may need to purchase an additional business insurance policy.
4. Installing a New HVAC System
Old furnaces and AC systems are inefficient, but some insurers also consider them a fire hazard. Replacing outdated equipment with modern, advanced models will make your home safer, which almost always translates to reduced insurance premiums.
For over 40 years, Sweeney Insurance Agency has helped Kodiak, AK, residents protect their most valuable investments. As an independent agency, they offer policies from several national brands and will work to find the one best suited to your needs. Visit their website for more on their homeowners insurance options, or call (907) 486-3101 to request a free quote.