A real estate purchase is one of the largest investments that you will make during your lifetime. This investment needs to be protected with a comprehensive insurance policy to help you avoid financial loss.
Homeowners insurance rates are based on a number of factors. While some of these factors may be outside of your control, there are some things you can change about your home to help lower insurance rates in the future.
1. Update the Electrical System
Dated light fixtures can leave your living space looking dull and tired. Many home remodels include the installation of new lighting to help update the property's interior. You can utilize a remodel as an opportunity to not only update your fixtures but your entire electrical system as well.
Insurance companies view older electrical systems as being high-risk. Old wiring, faulty circuit breakers, and other dated electrical equipment can increase the risk of fire within your home. If you use your remodel to update your home's electrical system, your insurance provider may be willing to reduce your monthly premiums.
2. Update the Plumbing
Kitchens and bathrooms are among the most remodeled rooms in residential properties. Investing money into the updating of these spaces can significantly increase the function and value of your home.
You might not see how new bathroom tile or the addition of granite countertops can affect your insurance premiums. The fact of the matter is that a kitchen or bath remodel usually involves some plumbing work.
Taking the opportunity to update your plumbing while the walls are open during a remodel can reduce the risk of a flood in your home. Insurers see updated plumbing as a way to reduce risk, and your monthly premiums might drop as a result of the lowered risk of water damage to your home.
3. Add a Security System
Part of your home remodel might include the updating of wiring in your residence to accommodate advanced electronic devices. While you are running new cable that can support high-speed Internet connections or installing a centralized entertainment hub in your home, you should consider adding a security system to your home.
Monitored security systems can utilize the same wire pathways as your home theater or whole-home entertainment system. A monitored security system alerts a dispatch center of any problems so that emergency services can be deployed to your home. Many insurance companies offer a discount to homeowners who choose to add a security system to their property.
Contact a local home insurance company to learn more.