Before you try to climate-proof your home, call your insurance agent

A new roof, better drainage or upgraded electrical system may make your home more resilient to Maine weather. But will any of it lower your homeowners insurance bill?

The answer depends on the house, the improvement and the insurer, which is why your insurance agent may be worth calling before the contractor.

Making a Maine home more resilient to heavy rain, flooding, wind, ice and other extreme weather isn’t only about preventing damage. Some improvements to your property may provide a financial return through lower insurance costs, fewer claims, avoided repairs and energy savings — and potentially make a home more appealing when it’s time to sell.

According to Cale Pickford, private client director for Allen Insurance and Financial, an insurance agent can help homeowners determine which improvements may actually matter for their individual home and their short and long-term plans.

Evaluating the ROI

The return on a home improvement isn’t always as simple as comparing the cost of the project with a potential insurance discount.

A new roof might lower a premium, for example, but it can also reduce the likelihood of an expensive claim and extend the life of the house. Other improvements may lower energy or maintenance costs without affecting insurance at all. And some benefits — like knowing your basement is less likely to fill with water during the next big storm — don’t fit neatly on a spreadsheet.

“Overall, people are paying attention to climate impact and how it figures into insurance premiums,” Pickford said. “Here in Maine, we are not as susceptible as other places that have massive wildfires, hurricanes and tornado patterns, but we’re not immune to our rates increasing because of them.”

At the same time, homeowners are seeing rate increases that may be outside their control, Pickford said many don’t realize their insurers may offer discounts when major systems such as roofing, plumbing, heating and electrical are upgraded or replaced, particularly when the work reduces the likelihood of a claim.

“On top of that there are state and federal incentives,” Pickford said, using a roof replacement as an example.

Maine’s new Fortify Maine Homes Program supports roofs built to nationally recognized FORTIFIED standards designed to better withstand high winds and wind-driven rain. The state says FORTIFIED roof standards have the potential to reduce water entry by as much as 95%. Maine’s program offers qualifying homeowners grants of up to $15,000 for eligible households.

Although the program is currently closed to applications, it is expected to reopen for the 2027 construction season.

Think beyond the shoreline

While Maine homeowners may not have to worry much about volcanoes or massive earthquakes, they do need to think about water.

For waterfront or near-waterfront homes, Pickford said the view is only part of what buyers should be looking at.

“As you’re admiring the water view, you have decisions to make beyond changing the appliances,” he said. “What’s the makeup of the shoreline, if there is one? Is there flood zone analysis? What would it cost to mitigate and shore up walls?”

The Maine Bureau of Insurance says proximity to the coast can already result in a higher premium, a higher windstorm deductible or both. But don’t overlook flood insurance simply because a house isn’t sitting on the waterfront.

The Maine Emergency Management Agency says nearly one in three flood insurance claims come from outside high-risk flood zones. An insurance agent can help a buyer compare a property’s flood exposure with the cost of separate flood coverage while also discussing whether there is mitigating work to be done, such as installing a French drain or sump pump.

Ask lots of questions

Pickford emphasized that a good agent should have the time and ability to explain a policy and potential changes in terms that are meaningful to the homeowner.

For example, a $10,000 improvement that saves $100 a year on insurance doesn’t have a particularly compelling payback based on the premium discount alone.

But that’s only part of the equation. If the same improvement prevents a major water loss, reduces the likelihood of a claim, keeps the property insurable and extends the life of the home, its real return can be considerably greater.

That distinction is important because homeowners shouldn’t assume every climate-resilient improvement will produce an insurance discount. Before starting significant work on your home, some key questions to ask your agent include:

• Will this improvement lower my premium?
• Could it reduce my deductible?
• Will it make the property easier to insure or renew?
• Does it need to meet a particular construction standard or receive certification to qualify?

Look at the whole return

Ultimately, the best return on climate-resilient improvements may be a combination of things rather than one dramatic reduction in an insurance bill: lower energy and maintenance costs, fewer repairs after storms, a reduced chance of a major loss, possible insurance savings and a home that’s better prepared for Maine’s changing weather.

That’s why talking with an insurance agent before buying a home — and again before undertaking a major improvement — can be as valuable as talking with the contractor.

Making changes to your home?

5 ways to make the most of your homeowner’s insurance

When homeowners talk about “return on investment,” they often are just referring to resale value. But for insurance brokers, the ROI for home improvements is also related to gaining back the value while you still live there. That could mean a reduction in premium rates, a reimbursement, or an improvement that prevented major damage.

Cale Pickford offered five strategies that he recommends his clients follow when thinking about ROI for home improvements.

1. Insurance is becoming more expensive, and companies are becoming more selective. To save money, Pickford said homeowners can consider higher deductibles and avoid filing small claims when it makes financial sense — something made easier when your home is updated and regularly maintained.

2. Your insurance company likely offers a list of home improvements that can lead to lower rates or reimbursements. Ask for the list to know what the insurer looks for, but think of upgrades to electrical, insulation, roofing, heating systems or plumbing to get the most return on your investment. Pickford specifically highlighted automatic water shut-off valves as an investment with the best ROI.

3. Upgrades like solar panels or a backup generator are often on the list too, but Pickford advised that the upfront cost will rarely pay out in savings over the years. However, these items may still be worth it to you for peace of mind or to align with your personal energy consumption goals.

4. Ask your agent before making an investment in renovations that increase your risk for liability, like a new swimming pool, or reduce your risk of loss, like a new security system. There may be additional layers of protection, including riders for valuable goods, to add in order to get your best ROI.

5. Shop around for a policy, interviewing agents before choosing one. Are they asking pertinent questions about your situation? Are they listening to you? Do they have referrals or community ties? How locally focused on your region is their office? What’s their reputation after someone files a claim? You want to be comfortable with your insurance company because they are a valuable ally through the ups and downs of owning a home.