Consumer Alert: Ways to help save money on homeowner’s insurance

Many homeowner say that they find ways to improve their home that will increase the resale value of the home.
But experts say that there are some ways to improve a home that will actually make homeowner’s insurance cheaper.
Experts say that improving the plumbing, adding a new roof or updating a home's electrical system will reduce the risk of fire or flood damage. Consumer Reports found that this can lower rates with some insurance companies by 2 to 6 percent.
“None of these discounts are huge, but if you do a few of them, they can add up,” says Consumer Reports’ Tobi Stagner.
Stagner says that a home security system can lead to a 5 percent discount as long as it is hooked up to an outside monitor. Some insurers will also throw in a percent or two more if the system includes cameras.
Here in the Northeast, where severe weather is a problem, homeowners can get a discount if they install a backup generator in their homes.
“If you have a built-in generator you can get a discount of up to 10 percent depending on the insurer,” Stagner says. “And the reason they do that is that the generator is going to keep other systems working, like a sump pump.”
But experts say that there are some home improvements that can cause insurance rates to increase. Installing a pool will increase liability. Adding an addition to the home, could make the house more expensive to replace. Both will cause rates to go up.