When you think of insurance discounts, your mind probably jumps right to car insurance. There seem to be a discount for everything when it comes to auto insurance: your driving record, the miles you put on your car, or profession, and so many others.
There aren’t nearly as many discounts for homeowners insurance, but there still are a few, and they can save you a lot of money.
One such discount is a home improvement discount. A home improvement discount is one of the niftiest insurance discounts on the market, because it rewards you for making your home better, which is a reward in and of itself. Here’s how it works.
What is a home improvement discount?
A home improvement discount is a discount that homeowners insurance providers give to homeowners who have made certain improvements to their home. If you improve some elements of your house, either by hiring a professional or through a do-it-yourself project, you might be eligible for a home improvement discount, and reduced homeowners insurance rates.
Why do insurance companies offer a home improvement discount?
Insurance companies offer home improvement discounts for a very simple reason: home improvement projects save them money, and they want to incentivize that.
Think of it this way: An insurance company makes money every time you don’t have to file a claim, and they lose money every time you do file a claim. A home improvement project increases the quality of your home, and thus decreases the likelihood of something happening that will result in you filing a claim. That saves money for your insurer.
What are some common projects that result in a home improvement discount?
The six projects that get you the largest home improvement discounts are the ones that have the most impact on your likelihood of filing a claim.
One project that is both common and results in a big discount is replacing or repairing your roof. Repairing or replacing a roof makes it much more likely that your roof will survive a storm, which can save you up to 35% on your home insurance rates.
Replacing the plumbing in your home is another common home improvement project that often triggers a discount. Updating your electrical systems and wirings is an important one, as is installing a generator. If you install a home security system, you’re much less likely to deal with thieves and vandals, and that can make you eligible for a home improvement discount on your insurance policy.
Replacing your old windows with shatterproof windows makes a huge difference in stormy areas, and can greatly reduce your rates. And putting up a fence makes you less liable with neighbors, especially if your home has items like a pool, swing set, or tree house.
How to get a home improvement discount
Your insurance company has no way of knowing when you’ve done a home improvement project unless you tell them. So anytime you perform a home improvement project on your home, call your insurance agent and tell them what you did, and why it made your home safer and less prone to damage. Ask them if they’re able to provide a discount or a reduced rate. Often they will.