How Home Renovations Can Save You Insurance Money
Tip #4 in the home buyer series was Knowing When To Bundle
This week, we are going to discuss the various updates insurance companies look for and how they can actually save you money on your Home Insurance. This is important for older homes that may have been renovated recently or if you are looking at home to purchase and have some renovation plans. We'll deep dive on to each one but there are 4 big home improvements or updates that most insurance companies want to know the renovation year of: The Roof, Electrical, Furnace, and Plumbing.
If you've recently replaced your roof, updated your furnace or plumbing or even done some recent electrical renovations. There is a good chance we can save you some money on your home insurance. Depending on the insurance company these updates can help you qualify for better or rates and/or help you qualify for renovation discounts. All great tools we LOVE to use to save you some money.
So if you are looking at buying an older home it's a great idea to ask the selling party about any updates to these items so we can use them to help save you some money!
Now let's dive in a little on each item and talk about their importance. Let’s start off by going over the different types of roofs we generally see.
Metal Roofing
Metal roofing usually is a galvanized steel, a thinner material and more likely to show rust. Metal roofs need to be inspected every ten years or so to ensure the fasteners are tight and holding up. Due to the roof being made from aluminum or coated in zinc, there may be spots of discoloration which will need to be painted over.
Standing Seam Roofing
Standing seam is galvalume steal, a thicker material, twice as resistant and will last longer. This type of roof does not require the same type of maintenance as regular metal roofing due to the concealed fasteners that are not exposed to the elements. If maintained properly, both types of roofs can last as long as 50-60 years.
Asphalt Shingle Roofing
Asphalt shingle roofing is quite easy to install and has a variety of colors to please the aesthetic of your home. On the flip side, with the sudden weather changes we experience here in New England you will notice that they decay faster. This type of roofing does not withstand wind as well as either type of metal roofing. Because of this, the life expectancy of a shingle roof is 15-20 years.
*INSURANCE TAKEAWAY*
When obtaining insurance for your new home, you will be asked what type of material was used for the roof and the approximate age. Some insurance companies offer discounts for new roofing or recently updated roofing. On the filp side if the roof is older the home might not be eligible for all companies.
Now on to the Electrical: While most homes these days use circuit breakers for their electrical service panel, some homes still use fuses.
Fuses
Usually installed before 1965, fuses were used to protect each individual circuit. Early fuses were used in 30- and 60-amp service panels. Today’s homes require 100- to 200-amp service panels to properly protect the home. Fuses that need to be replaced need to match the amperage rating of the circuit. Replacing a fuse with a larger amperage rating is cause for a fire.
Circuit Breakers
All new homes are equipped with circuit breakers. Unlike fuses that must be replaced when they are “blown”, circuit breakers are “tripped” and need to be reset. A circuit breaker is usually tripped due to an electrical overload of the system which can be an easy fix.
*INSURANCE TAKEAWAY*
You will almost always be asked if there any fuses in your home if your home was built in 1965 or earlier. Most companies do not want to insure a home that still has active fuses. Circuit breakers are far more desirable to insurance companies.So if you encounter fuses on a home you are buying it will make insurance more difficult and likely expensive.
Now lets talk about the furnace: “Do you have central heat?” We find that in rural areas in New England, some people choose to heat their homes with wood or pellet stoves only. Let’s check out the differences.
Direct Heat
This type of heating would include, gas-fired space heaters, electric space heaters, wood/pellet stoves, and fireplaces. These are great sources of supplemental heat, although we do not recommend gas-fired or electrical space heater as these pose a higher fire risk. Especially here in New England, we know that central heat systems need to supplemented as it can get very cold and windy. If you are using wood/pellet stoves or fireplaces, be sure to maintain them every year and make sure they are properly installed by a professional.
Central Heat
This is the main type of heating in homes. Central heat is controlled by a thermostat and will attempt to keep the home at whatever temperature you have it set at. Furnaces, boilers and heat pumps are generally, the different types of central heat that is used. More commonly, furnaces. No matter what type of heat sources you are using, they should be maintained at least once a year.
*INSURANCE TAKEAWAY*
Your heat source is a key question for insurance companies. With supplemental type heating such as the direct heat sources we listed, indoor temperatures can vary quite frequently and may be difficult to maintain if you are away from the home. This can be cause for concern as there is a higher risk of fire or a freeze up. If central heat is your main source of heat you are much better off for saving money on insurance. It is still importance to have it properly maintained and replaced when needed.
Okay, so plumbing isn’t all that fun to talk about but it’s another important piece of the insurance process. There are various types of piping that can be used and there are pros and cons to all.
PVC, PEX and Copper
These are the two types that we most commonly know or refer to as plumbing piping. PVC, or polyvinyl chloride is easier to work with and is significantly lighter than metal piping. Copper piping can be a bit more difficult to install as it needs to be soldered together to seal its connection to another part of the piping. Copper piping is used for water supply as it does not pose any health risks.
Galvanized Steel Pipe and Cast Iron
These two are sometimes found in older homes. Galvanized steel was used for drainage, water supply and gas supply. It is still used for gas supply but is almost never used for water supply. Cast iron pipes are still found in older homes but becomes problematic when it rusts. Thus, making it a less desirable option.
*INSURANCE TAKEAWAY*
It is good to know what type of plumbing pipes are used in your home and more importantly, when they were last updated including the water heater. Updates with in the last 25 years are helpful for saving money.
We want to make sure you are fully prepared when buying your new home. These are great questions to ask your real estate agent when looking at various properties as any one of these things can hinder your buying process if something needs to be repaired or replaced.
We are here to make things as simple as possible, so we want to provide you with all the knowledge and tools to help you along this process. If you want to continue to make this process easy, click the link below and Travis will help you out!