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Home maintenance projects and their impact on your home insurance

If you own a home then you’re well aware that the need for maintenance is a year-round reality. Despite that truth, the spring and summer months are a great time of year to inspect your home’s exterior for any winter damage or regular maintenance issues which may need your attention.

It makes good sense to survey your house for damage and make any repairs right away. Quick action can stop things from getting worse and minimize costs in the long run. And while some people still believe the myth, your insurance is not going to pay for home maintenance projects. Insurance covers insured perils, like fire and theft, among other things. But if you haven’t maintained your home, your insurance provider could have reason to deny a claim or cancel your policy altogether.

Fortunately, a well-maintained home can be your ticket to a lower home insurance premium. From upgrading your plumbing to repairing your roof, these maintenance projects can improve the structure and safety of your home and increase its value.

Here are three home maintenance projects that can score you a better home insurance rate.

  1. Upgrading heating, electrical, and plumbing systems

Upgrading your home’s various heating, electrical, and plumbing systems has the potential to lower your insurance premium. Newer methods and materials can pose less risk to insurance companies since they tend to be safer and less likely to cause damage.

Often, furnaces and other appliances have a lifespan and, for this reason, are not covered under your standard home insurance policy (unless you have bought additional coverage from the manufacturer or installation service). Before making any upgrades, talk to your provider about how upgrading your home’s various systems will impact your premium, and consider your options.

  1. Waterproofing

Your insurance provider may cover water damage to your home, but it depends on where the leak originates. For instance, if your dishwasher breaks down and springs a leak, you might be covered. On the other hand, melting snow that enters your home likely won’t be.

It is essential homeowners take measures to prevent problems from occurring. Talk to your insurance provider to reduce your home’s susceptibility to water damage and increase your chances of being covered should anything happen.

Homeowners may be able to purchase overland flooding protection or coverage for specific perils to enhance their home insurance policy.

  1. Roof repair

Your roof plays a significant role in protecting your home. Notify your insurance company if you plan to make repairs or choose to replace your roof, particularly if you change the style. The materials’ strength, susceptibility to fire, and expected lifespan can affect your home insurance rate.

While your home insurance will not cover general wear and tear, storm damage – typically from wind or hail – might be covered under your policy. Say your roof suffers damage under the weight of snow. In this case, your coverage will vary from plan to plan due to the preventable nature of the leaky roof.

If your roof is old, your home insurance may refuse to provide coverage until you make the repairs or offer coverage at a depreciated value. Check your roof after any major storms and in the spring. This regular maintenance can ensure you keep your home insurance coverage.

Increasing your home’s replacement cost

You pay home insurance on your home’s replacement value rather than what it’s worth on the market. Although maintaining your home can prevent damage and save you money in the long run, some projects also increase the cost of rebuilding it.

As a result, certain projects could cause your insurance premium to increase. Your roof is a perfect example. A new roof may now be deemed less of a risk, but better materials can impact the assessed value of your home.

Before starting any renovations, you can call one of the brokers or CSRs at DM insurance Group for advice on how home upgrades will impact your insurance rate. Discounts for improving and upgrading your home may outweigh the increased replacement cost.

 

Source: Insurancehotline

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