Many homeowners are surprised to learn that certain home updates may not lower their insurance premiums, but they can make a big difference when it comes to keeping your policy in place and maintaining access to good insurance options.
Two of the biggest things insurance companies are paying attention to right now are roofs and water heaters.
The Importance of Your Roof
One of the most common misconceptions homeowners have is that replacing a roof will automatically reduce their insurance costs. In today’s market, that is usually not the case.
Insurance companies, especially here in Florida, are very cautious about older roofs because of the increased risk of wind damage, leaks, and water intrusion. As roofs age, they become more likely to lead to claims, which is why many carriers have strict underwriting guidelines regarding roof age.
In many situations, replacing an older roof is less about lowering your premium and more about keeping your policy eligible for renewal. An older roof can limit your insurance options or even make it difficult to obtain coverage altogether.
The good news is that the insurance market has become more competitive over the last year, with more carriers entering the marketplace and competing for business. Having a newer roof can help homeowners qualify for more insurance options and potentially better pricing with certain carriers.
Why Water Heaters Matter
Water heaters are another item many homeowners overlook.
Most insurance carriers become concerned when a water heater is more than 15 years old because older units are more likely to leak or fail unexpectedly. Even a small leak can cause significant water damage inside a home.
Because of this, some insurance companies may decline coverage or limit eligibility if a home has an older water heater still in use.
Just like a roof replacement, installing a new water heater usually will not create a direct discount on your insurance policy. However, it may help open the door to carriers that offer more competitive rates and better coverage options.
Protecting Your Home — and Your Insurance Options
Home updates should not only be viewed as a way to save money on insurance. They are also an important part of maintaining the home and keeping as many insurance options available as possible.
Simple updates and preventative maintenance can help homeowners.
- Avoid underwriting issues
- Keep policies from being non-renewed
- Maintain eligibility with more insurance carriers
- Improve access to better pricing and coverage options
If you are unsure about the age or condition of major systems in your home, obtaining a four-point inspection from a licensed home inspector can be very helpful. A four-point inspection reviews the roof, plumbing, electrical, and HVAC systems and can help identify issues before they become a problem during an insurance renewal or application process.
Homeowners are also welcome to contact our office for a full policy review and insurance evaluation. We are always happy to review your current coverage, discuss the condition of your home, and make recommendations based on future improvements or renovation plans.
Being proactive today can help avoid unexpected insurance issues down the road.
