Home Maintenance • January 23, 2025

Smart Ways to Offset Higher Homeowners Insurance Costs

by Donna Ragland

Smart Ways to Offset Higher Homeowners Insurance Costs

Published: August 26, 2024

Shop carefully for homeowners insurance and don’t leave any price breaks on the table.

If you’ve had homeowners insurance coverage over the past couple of years, you’ve probably felt the pain of soaring costs. Insurers say they’re charging more to compensate for climate change issues, the rising costs of materials, and inflation. You can’t control home insurance companies’ pricing based on market conditions, of course, but you can control some of your costs by being proactive about bundling, pursuing discounts, and more.

Why Homeowners Insurance Costs Are a Growing Problem

In addition to jacking up premiums, some insurers are exiting certain markets. Large insurers like Allstate, American Family, Nationwide, Erie Insurance Group, and Berkshire Hathaway have eliminated natural disaster coverage, including wind and hail, from their policies in some areas.

Homeowners insurance coverage in Florida has been especially hard hit. Insurers say they’ve been forced to hike rates or exit the state entirely. In the past half dozen years, devastating hurricanes have brought billions of dollars in insured losses, spurring 36 insurer bankruptcies and spiking average premiums to more than $4,000 yearly. That’s nearly three times the national average, says Samuel Greenes, founder of BLUE Insurance in Farmingdale, N.J.

The problem isn’t just storm damage. Rising property values, state regulations, rampant insurance fraud, and insurers’ hesitation to innovate have all worsened Florida’s issues, says Angel Conlin, chief insurance officer at Chicago-based Kin Insurance. High costs and the lack of coverage have even convinced some homeowners to leave the state.

Home insurance costs are still rising because of insurance companies’ previous losses based on inflation, the elevated cost of building materials and the probability of future extreme weather-related losses, according to a 2024 analysis by Bankrate.

Homeowners Insurance Costs Vary Widely by Location

Homeowners insurance rates can fluctuate wildly, based on location. Bankrate’s analysis of average home insurance costs showed that policies with $300,000 in dwelling coverage can cost less than $1,500 per year, as seen in Vermont, West Virginia and New Hampshire, but cost well over $4,000 a year in states like Florida and Louisiana.

In some cases, fluctuations occur in the same state, Greenes said. For instance, according to 2021 data, the average annual premium in Florida was $3,588, with Miami-Dade at $7,256 a year and rural Liberty County averaging only $1,317 yearly, he explains.

Individual costs for insurance coverage depend on factors such as your location and that region’s weather-related risks, the amount of coverage carried, home characteristics such as roof type, deductible, insurance score, claims history, and discounts.

“While some perils are universal — a home can get broken into anywhere — others are regionally specific,” Conlin says, pointing to California wildfire risks, Louisiana flooding and hurricane dangers, and Oklahoma tornadoes. “On the other side of the coin, landlocked homes in the Midwest and West — Utah, Wisconsin, Idaho, and Nevada — often have lower home insurance rates because they are exposed to fewer catastrophes like floods, hurricanes, wildfires, and earthquakes,” Conlin adds. “That means they are less likely to suffer damage and require repairs.”

Analyze Limits of Home Insurance Coverage

When shopping for homeowners insurance, it pays to analyze and compare key features, Greenes says. Dwelling coverage limits cover damage to the physical structure. “Make sure limits match the estimated full rebuild costs,” he advises. “Compare replacement cost vs. actual cash value. Replacement is better but more expensive.”

Assess personal property coverage to see if limits are adequate to replace all possessions. Some items, like jewelry, may require special riders, Greenes says. Scrutinize deductibles, because higher deductibles mean lower premiums but greater out-of-pocket costs when making a claim. Weigh the trade-offs to reach an ideal level.

Essential Areas of Homeowners Insurance Coverage

When shopping, homeowners should consider issues including:

Amount of Liability Coverage

Take the time and effort to correctly estimate the value of your personal belongings, Conlin advises. Review your liability coverage, which may need to be higher than the typical $100,000 if you host large parties. And know what’s excluded from home insurance.

Construction and Repair Loss Exclusions

“Many homeowners insurance policies exclude losses related to the construction, repair, or demolition of a home when these are required by ordinance or law,” Conlin says. “For example, if your home insurance has this exclusion, your insurer most likely won’t pay for any upgrades required by new building codes.”

Neglect and Weather Exclusions

Other exclusions in your homeowners policy may include earth movements such as earthquakes, landslides, mudslides and sinkholes, Conlin says. Water from flash flooding is often excluded, as are power failures if they occur away from your home. Insurance companies typically won’t pay claims to homeowners who didn’t take care of their properties. War and nuclear hazards aren’t covered, nor are intentionally caused damages and losses as a result of government action, she adds.

How to Manage Homeowners Insurance Costs

Here are key ways to rein in your homeowners insurance expenses:

Shop and Compare Insurance Providers

Go on a home insurance shopping spree, advises Tyler Grizzle, a partner in Bluffton, S.C.-based GSP Insurance Group. “Compare, compare, compare!” he says. “Quotes are your best friends. And just like in any relationship, check out your insurer’s reputation and stability. If switching, watch out for those sneaky fees and coverage gaps.”

Bundle Home and Auto Coverage

“Bundle home and auto policies, which often yields substantial savings,” says Robert Schmied, lead financial consultant with Switzerland-based Kredite Schweiz.

Add Home Features and Upgrade Systems

Other cost-reducing measures include taking advantage of discounts for implementing energy-efficient features, weatherproofing, and installing home security features,” Schmied says. “Upgrading plumbing and electrical systems can also reduce premiums.”

Explore Statewide Discounts and Credits

Conlin also recommends exploring additional discounts including wind mitigation credits. “Florida homeowners know how important a roof is,” she says. “It can be the difference between a home being destroyed or staying intact during a hurricane. The more wind resistant your roof is, the more you’ll save on your home insurance.”

California homeowners may benefit from a fire mitigation discount, based on steps taken to make homes more resistant to wildfires, Conlin adds. Discounts may be available for ember-resistant venting and annual brush removal contracts.

Research New Construction and Community Discounts

Homeowners may be eligible for discounts if their homes were built less than six years ago by accredited builders, defined as active builders providing warranties that cover defects in workmanship or materials. Community-based discounts may be available to those whose homes are part of a homeowners association, are in mobile home parks, or are part of secured communities. “The logic here is that HOAs and mobile home parks typically have quality standards for home maintenance,” Conlin explains.

Check for More Varied Discounts

Other discounts offered include those for mature homeowners 55 and older, new homeowners who bought a home in the past year, and owners of qualifying LEED-certified homes, Conlin says.

Policy Factors That Affect Cost

No two home insurance policies are precisely the same. Conlin says it’s important to weigh the factors that might impact cost:

Property insurance. Policies offering replacement-value coverage for personal property tend to cost more than those offering actual cash-value coverage.
Property liability limits. A policy with $100,000 in personal liability coverage costs less than one with half a million coverage, but insurers believe the former level is inadequate.
Deductible. The higher your deductible, the lower your premium, but make sure you can afford the deductible.

Top 10 Tips to Save on Homeowners Insurance Coverage

Here’s an at-a-glance summary to reduce your homeowners insurance expenses:

Shop, compare, and change carriers if necessary.
Bundle home and auto insurance coverage.
Add energy efficiency, weatherproofing, and home security features.
Upgrade plumbing and electrical systems.
Explore wind mitigation credits and fire mitigation discounts.
Ask about accredited builder discounts.
Inquire about discounts for being part of a homeowners association.
Check into homeowner discounts for those 55 and older.
Look into new homeowner discounts for those buying in last year.
Investigate LEED-certified home discounts.

The most basic advice is to review your policy annually. “By keeping track of any changes to home or family, you can ensure you always have the right coverage and the right provider for your situation,” Conlin says

Fireplaces • Home Maintenance • Mold • Uncategorized • January 22, 2025

Home Weatherization and Weatherproofing Guide: Protect Your Home From Storms and Extreme Weather

by Donna Ragland

Home Weatherization and Weatherproofing Guide: Protect Your Home From Storms and Extreme Weather

By: Melissa Dittmann Tracey

Published: October 31, 2024

Find practical ideas to better protect your home against whatever nature throws your way.

One of the latest buzzwords in home maintenance is weatherproofing — equipping your home to better withstand heavy rains, wind, snow, and extreme temperatures. Recent climate events — from wildfires and severe storms to floods and extreme heat or cold — are motivating more homeowners to take action or step up what they’ve done in the past. Meteorologists are predicting a La Niña weather system for the winter, which could bring a mix of weather conditions across the U.S.

Sixty-four percent of the 1,200 homeowners surveyed by HIPPO, a home insurance group, say they’re concerned about severe weather or climate threats damaging their homes. More than half (56%) say they’ve already experienced damage.

Protect Your Investment: Why You Should Weatherproof

“We can’t prevent the weather, but we may prevent things from going wrong in our homes,” says Mark Olson, home insights expert at HIPPO. For example, an improperly sealed basement window can lead to flooding after heavy rains (a repair not covered by most standard homeowner’s insurance policies). “Weatherproofing your home also might lower the cost when unexpected [problems] do occur,” Olson adds.

Weatherproofing also may save you money on your energy bills, with savings, on average, from $150 to $1,200 per year, according to the American Council for an Energy-Efficient Economy.

Expert Weatherproofing Tips: Weatherization Ideas for Every Budget

Experts offer storm and weatherproofing ideas that will make the most difference in your home based on three budget levels: low, medium, and high-end:

Effective Weatherproofing Tips: Budget-Friendly Ideas Under $350

Use Insulation Wraps

Water heaters, often located in areas like an unfinished basement or garage, may benefit from a water heater insulating blanket (best for electric water heaters). It could reduce a system’s heat loss by up to 45% and even cut water heating costs by up to 16% in cooler months, according to the U.S. Department of Energy.

Estimated cost: $35 to $43

Have an Annual Inspection

Have inspections conducted annually to check the roof, the fireplace, and your home’s key systems — like HVAC and water heaters (have them drained too!). Leaves, bird nests, and other flammable materials can accumulate in fireplaces, posing fire risks. (For about $300, a chimney cap to block can block cold drafts, debris, and pests.) Also, self-inspect the attic for moisture, discoloration on walls or ceilings, or signs of pests. “An attic is an early warning system for your house,” Olson says. “You can learn a lot about the overall health of your home and roof by keeping an eye on your attic.”

Estimated cost: $150 to $300

Add Weatherstripping and Caulking

Caulking and weatherstripping can prevent drafts and waterproof your house. Caulk tends to last five years, but that can vary greatly. “Look for gaps where cables enter your home, small holes in your flooring and walls, doors, and windows — anywhere a draft could be entering your home,” says Stuart Bensusan, director at Surewise, a home insurance company. “Sealing up small gaps and cracks in your home can help bring serious savings on your heating bill.” Also, weatherproof a door by attaching a door sweep to the bottom to block drafts.

Estimated cost: $350

The Department of Energy’s Weatherization Assistance Program provides weatherproofing services to about 35,000 eligible low-income households annually. On average, households save $372 or more per year. Learn more about your state’s offerings at Energy.gov.

Smart Weatherproofing Solutions to Weatherize for Under $1,500

Get an Energy Audit

A professional energy audit can flag problem spots. Diagnostic tests may include a blower door test or infrared imaging to detect air leaks, and inspections of windows, doors, and appliances. Based on the findings, tackle your home’s problem areas with caulk, weatherstripping, and other air-sealing methods. (Savings tip: Some utility companies offer a free or low-cost energy audit, says Docia Boylen, owner at Handyman Connection of Golden in Conifer, Colo.)

Estimated cost: $420

Use Low-E Windows or Coverings

Window weatherproofing could consist of swapping in a Low-E coated glass or film to minimize heat loss, says Kyle Barr, a vice president at Storm Guard Roofing and Construction in Lillian, Ala. In colder climates, look for window weatherproofing film with higher solar heat gain coefficient, or SHGC, ratings — like 0.30 to 0.60 — which filter out less natural light, and for warmer climates, lower SHGC ratings — less than 0.27.

Coverings like drapes can also help. “One of the best investments, especially if your windows are old, is thermal curtains,” says home renovation expert Drew Mansur, director at TileCloud in Australia. “They not only spruce up your interiors but also provide an additional layer of insulation to keep the cold out.”

Estimated cost of Low-E windows and coverings: $600

Fix Drafty Air Ducts

Ducts leaking even 20% of conditioned air passing through forces systems to work 50% harder and increases utility bills, finds a report from the University of Florida. A leaky duct can also cause higher indoor humidity, triggering mold and mildew. Most heating and air ducts are sealed with tape when first installed, but that tape can break down over time. Ductwork also may have holes or loose sections, rust, leaks, clogs, or condensation — all requiring repairs by HVAC professionals.

Estimated cost: $600

Plant Windbreaks

Landscaping can provide windbreaks to reduce wind around a home by up to 50%, as well as prevent snow drifts and reduce heating costs, according to the Department of Energy. “Dense evergreen trees and shrubs planted to the north and the northwest of the home are the most common type of windbreak,” the DOE notes. “Trees, bushes, and shrubs are often planted together to block or impede wind from ground level to the treetops.” A row of evergreen and deciduous trees, such as maple trees, can be effective, but two rows of staggered trees create a denser wind screen.

Estimated cost: $200 per evergreen tree

High-End Weatherproofing Tips: Invest $1,500 and More

Install Attic Insulation

“Large amounts of heat can quickly be lost in a poorly insulated attic,” Bensusan says. The North American Insulation Manufacturer Association estimates nearly 90% of existing homes in America are underinsulated. Extra attic insulation also can protect pipes — like water lines in the attic — from freezing and bursting.

Estimated cost: $1,700 to $2,000

Upgrade Windows and Doors

Weatherproofed exterior doors and windows are more energy-efficient. Windows consist of double panes of glass, and doors have extra insulation. “This is both a great way to save on your bills and increase the value of your home,” Boylen says. Depending on your climate, hurricane shutters — made of aluminum, steel, or polycarbonate — can add protection against wind-blown debris. Also, storm windows and doors that fit over the outside of existing ones add a protective layer.

Estimated cost: $7,500

Replace Your Roof

Roofs typically last 20 to 30 years. When your roof is due for a replacement, consider weatherproof roofing materials. Pricier metal or tile roofs are more apt to withstand heavy winds and rain than lower-cost asphalt shingles, which gusty winds can tear off. Depending on your climate, hail-resistant shingles could benefit you.

“Whether your roof is in good condition or not, you can always make it more weatherproof,” Mansur says. For example, rigid insulation boards or a new weatherproof layer can add insulation and protection, he says. Also, solar panels can protect a home against power outages caused by extreme weather. The costs for installation — anywhere between $10,000 to $30,000 — may be offset with a 30% federal tax credit. Solar panels could save homeowners nearly $42,000 over 25 years, according to EnergySage.

Your roof is your main line of defense against extreme weather, particularly wind and rain. “Relatively minor damage to a roof can result in some very expensive damage to the interior of the home,” says David Hinson, a professor at Auburn University’s School of Architecture who focuses on incorporating enhanced energy performance features into affordable homes. If your roof is worn out, see replacing it as a golden opportunity to make your house more climate-resistant. New materials and technologies have helped roofs better withstand high winds.

Estimated cost: $9,000

Invest in Resilient Design

The smartest weatherproofing ideas come from the principles of resilient design, which incorporates elements like stronger windows and roofs, higher insulation, fire-resistant materials, and passive energy sources to create a home built for maximum protection. These improvements are more expensive than some of the routine fixes you may be used to, but investing for the long term will build your home’s protection and save money over time

Home Maintenance • January 22, 2025

A guide to Bathroom Remodel Costs

by Donna Ragland

A Guide to Bathroom Remodel Costs

By: HouseLogic

Published: August 30, 2024

Looking for a refresh or an overhaul? Either way a bathroom remodel could be just the thing to boost home value and your enjoyment of the space.

Many homeowners are excited to turn their bathrooms into a spa-like oasis with exciting upgrades. But before starting an ambitious remodel, it helps to understand the costs of such a project. Let’s review various factors in bathroom remodeling and the associated costs.

Factors Influencing Bathroom Remodel Costs

Remodeling costs vary based on components like location, labor, and the size and style of the space. Here are a few factors to consider:

Size and Scope of Your Bathroom Remodel

Size is self-explanatory – the square footage involved. The scope of your project could include existing plumbing, the difficulty of demolition, the floor plan and layout, the number of upgrades and fixtures, and the doors and windows. Problems that require repair (such as water damage) may add to your costs. A complex project with many changes will cost more than a few surface-level or small-scale changes.

Permits and Regulatory Costs

Permit requirements vary by location. Check with local authorities about county or municipal codes and get an understanding of current permit costs. You may need to factor in $150 to $1,000 for permit costs based on location and project. A contractor can also tell you whether your remodel requires a permit.

Labor and Materials

Labor is one of the primary costs associated with a remodel and rates can vary based on where you live. Interviewing a few contractors in your area will help you plan your labor budget. For a basic bathroom remodel with about 50 hours of labor, expect costs to start at $4,000. For a major bathroom renovation and about 90 hours of labor, expect to pay up to $11,200. The materials also affect the cost of your remodel. Certain materials — like natural stone or quartz countertops, brass faucets, or heated flooring — can make your bathroom look more luxurious, but they may also drive up the price of the project.

Types of Bathroom Remodels

Identifying the depth of changes you’re planning can help you budget for your remodel.

Levels of Bathroom Remodeling

Let’s review a few levels of bathroom remodeling. Your project may not fit easily into just one level, but this offers a look at the options.

Cosmetic upgrade: Involves changing fixtures, updating paint, replacing hardware, installing new lighting, and adding accessories.
Tile and flooring update: Focuses on changing the flooring and/or wall tiles, which can significantly alter the aesthetics of the bathroom.
Plumbing and electrical updates: Can include updating or relocating plumbing and electrical components to improved functionality and efficiency.
Luxury remodel: Covers everything from chic changes to updates focused on comfort. It may include installing premium fixtures, using high-end materials, adding luxury amenities like a spa tub, or incorporating advanced smart home features.
Mid-level remodel: Includes both cosmetic and functional upgrades, often involving updating fixtures, changing the layout, installing new flooring and tiles, and revamping plumbing and electrical systems.
Complete gut and remodel: Requires demolition of the existing space and rebuilding from scratch.

Bathroom Remodel vs. Bathroom Renovation

While the terms “remodel” and “renovation” are often used interchangeably, each has a distinct meaning. A renovation implies a refresh. It may involve repairing or restoring existing elements of your bathroom with cosmetic upgrades. Remodeling implies a wider scope of changes including structural changes, new installations, or a total redesign.

Key Design Elements of a Bathroom Remodel: Costs

Certain design elements of your bathroom can make a big visual impact. Here’s a breakdown of some of the costs associated with these upgrades.

Vanity and Cabinets

Installation of a bathroom vanity can cost $565 to $839, according to Homewyse. These are rough estimates that would be affected by your location and the materials you select. The average cost of refinishing bathroom cabinets ranges from $6.85 to $15 per square foot.

Flooring

The average cost to replace a basic ceramic floor in a 50-square-foot bathroom is roughly $500. However, most bathroom floor replacements cost $250 to $2,500. If you uncover mold or other issues during the remodel, costs would increase.

Ceramic tiles are easy to maintain but can get chilly. At $8 to $15 per square foot to install, radiant mats are a cost-effective solution.

Fixtures: Sinks, Faucets, and Toilets

The cost to buy and install faucets typically falls between $225 and $475. For sinks, expect to pay $300 to $5,500, and for toilets, you may spend between $350 and $3,500.

Lighting

Lighting can make or break a space and is a key functional aspect of a bathroom. If you’re seeking budget-friendly lighting options, a small change can make a big difference. For example, updating the color temperature of the bulbs can quickly warm up the space. For a bigger impact, you might change the fixtures. Homeowners may spend $1,709 to $2,071 on their bathroom light fixtures and installation, according to Homewyse.

Tub and Shower

Shifting your shower plumbing to a different spot in the bathroom can cost as much as $4,100, and purchasing and installing new shower fixtures range from $1,500 to $3,500. Installing a new tub ranges from $1,500 to $2,900.

Tiles and Backsplashes

Updating the tiles in your bathroom can transform the look of the space. Fancy tiles enhance your bathroom’s appearance and contribute to a spa-like feel. Your tile expenses will depend on your project. Some homeowners prefer to stick with tile in the shower; others may use tile for only the floor. Inexpensive tile options like ceramic and porcelain costs $10 to $44 per square foot, including installation. Glass tiles are pricier, at $27 to $114.

Bathroom Remodel Costs Based on Size and Type

The number of components and the size of your bathroom will inform the cost of your remodel. Standard bathrooms include four main components: a bathtub, a shower, a toilet and a sink.

Powder Rooms or Half Bathrooms

A powder room or half bath usually includes just a toilet and a sink. Fewer components may mean these bathrooms are less expensive to remodel than their larger counterparts. You could pay $1,200 to $4,000 for a half-bath remodel.

Three-Quarter Bathrooms

This bathroom style typically includes a shower, a toilet, and a sink. Remodeling costs range from $3,125 to $6,000.

Full Bathrooms

A full bathroom includes a tub, a sink, a toilet, and a shower. Full baths vary in style and size but in general, a full bathroom remodel costs between $5,250 and $16,000, while a partial remodel costs $3,500 to $12,000.

Bathroom Remodel Project Cost by Project Scope

Homeowners can determine the complexity and breadth of their project based on their budget.

Low-Cost Projects

A one-day remodel could give your bathroom a fresh new look without a big price tag. For this type of project, expect to pay as little as $3,000. Consider updates like surface liners on your tub and shower that can visually transform your bathroom in just one day.

Mid-Range Projects

The average cost of a partial bathroom remodel with new flooring and fixtures and some design updates is $5,000 to $15,000.

High-End Projects

Lavish bathrooms with plenty of space and high-end fixtures and finishes come with a steeper price tag. Expect to shell out $27,500 to $100,000 for luxury remodels.

Successfully Navigating Bathroom Remodel Costs

The level of bathroom remodel you choose will depend on your goals, budget, and the condition of your existing space. It’s a good idea to compare price quotes and material costs, develop a clear project plan, and work on a flexible budget before taking on a bathroom remodel.

Bathroom Remodel Cost Frequently Asked Questions

Can I DIY a Bathroom Remodel to Save Money?

If you have renovation and construction experience, you may be equipped to execute a bathroom remodel. But you need to be well versed in the trades and understand local regulations and permits. Performing tasks like painting and decorating could help lower costs, but it’s best to leave complex remodel tasks to the pros if you aren’t experienced.

When Should I Hire a Professional?

For complex projects with structural changes or plumbing or electrical work, consider hiring a professional, who is more likely to do the work safely and up to code. Professionals bring specialized knowledge and skills and are used to tight schedules. They can often complete the project more quickly than DIYers, especially if surprises or issues arise.

How Do I Budget for Unexpected Bathroom Remodeling Expenses

When you budget for your bathroom remodel, identify potential problems such as plumbing, electrical, or structural concerns. Look up common challenges associated with bathroom remodels and assess your space for those issues. Get opinions and quotes from multiple contractors and choose the best option. Lastly, set aside a contingency fund for unexpected expenses.

What’s the ROI of a Bathroom Remodel?

NAR’s Remodeling Impact Report, estimated that homeowners would recover around 71% of the value of their bathroom remodeling investment. About a quarter of real estate agents recommend a bathroom remodel before selling your home. Consider high-ROI projects like accessibility modifications, new flooring, or a tub/shower upgrade.

How Long Does a Bathroom Remodel Typically Take?

Cosmetic upgrades may take a few days to a week. Extensive remodeling work can take several weeks or a few months. The availability of materials, the speed of contractors, and adherence to the project timeline all contribute to the overall time frame. Talk to your contractor about timelines and factor in a buffer period of a week or two when figuring when you’ll have use of your bathroom again.

Uncategorized • January 21, 2025

Make an offer like a boss

by Donna Ragland

Make an Offer Like a Boss

By: HouseLogic

These 10 money- and time-saving steps can help you craft a winning bid.

Ah, the offer! Cinematically speaking, this is a key turning point. We’d forgive you if you imagined, say, putting a hand on your agent’s shoulder and whispering (in your best Vito Corleone) that you’re going to make the seller an offer they can’t refuse. In reality, making an offer on a house isn’t that simple — or dramatic.

Your offer marks the beginning of a back and forth between you and the seller, typically with a separate real estate agent advising each of you.

The more intentional you are about your offer, the better your chances of making a successful bid. Follow these nine steps, and you’ll be well prepared.

#1 Know Your Limits

Your agent will help you craft an offer. You can trust your agent’s advice on price, contingencies, and other terms of the deal: It’s a mutually beneficial relationship. The more collaborative you are with your agent, the more quickly you may be able to move.

But ultimately, you will decide what the offer will be, and you know what your financial and lifestyle limits are. Buying a home involves mixing strong emotions with business savvy, so now is also a good time to reflect on your must haves.

Have a top limit for your offer price because you’re also saving for retirement and love beach vacations? Stick to it.

If the property you’re considering is governed by a homeowners association, check on the following:

Want a vegetable garden or to paint your home’s exterior purple? Make sure your HOA rules permit it or avoid an HOA-governed property altogether.
Besides reading HOA rules, find out how much the HOA has in reserves to cover common area repairs. You don’t want to be unexpectedly slapped with a special assessment.
Want a dog-friendly community? Make sure there are no pet weight limits preventing you from sharing space with your (extra-large) canine bestie.

#2 Learn to Speak ‘Contract’

Essentially, an offer is a contract. The documents and wording vary across the country.

In the spirit of due diligence, take time to review sample offer forms before you’ve found a house. (LawDepot.com has purchase agreements for each state.) If you’d feel more comfortable with an extra level of information, a real estate attorney can explain the documents to you. That way, you’ll be familiar with the vocabulary when you and your agent are ready to make an offer. Your agent will have offer forms for your state.

Explore More Topics:

Make an Offer & Negotiate

Buy a Home: Step-by-Step

#3 Set Your Price

Homes always have a listing price. Think of it as the seller’s opening bid in your negotiation to buy a home.

When you, as the buyer, make an offer, it will include an offer price. This is the first thing home sellers look at when they receive a bid.

Your agent will research and report on comps, or comparables, to help you determine whether the seller’s listing price is fair. The process involves comparing the house you’re bidding on to similar properties that recently sold and are in the same neighborhood.

Several factors can also affect your bargaining position and offer price. For example, if the home has been sitting on the market for a while or you’re in a buyer’s market, where supply exceeds demand, the seller may accept an offer below the list price. Or, if the seller has already received another offer on the home, that may impact the price you offer. Your agent will help you understand the context.

#4 Figure Out Your Down Payment

To get a mortgage, you have to make a down payment on your loan. For conventional loans (as opposed to government loans), making a 20% down payment enables borrowers to avoid having to pay private mortgage insurance. This monthly premium protects the lender in case the borrower defaults on the loan.

But 20% isn’t always feasible — or even necessary. In fact, the typical down payment in 2023 was 8% for first-time buyers and 19% for repeat buyers, according to the National Association of REALTORS®. Your lender will help you determine the best down payment amount for your finances. Depending on the type of loan you get, you may be able to put down as little as 0% on your mortgage.

You might qualify for one of the more than more than 2,500 programs available from state and local governments, charities, and private lenders to help meet your down payment requirements. Find out more about down payment assistance programs in your state.

You can use an online mortgage calculator to see how different down payments would affect your mortgage premiums and how much interest you’ll pay.

#5 Show the Seller You’re Serious: Make a Deposit

An earnest money deposit, or EMD, is the sum of money you put down to show the seller you’re serious (read: earnest) about buying the house. If the seller accepts your offer, the earnest money will go toward your down payment at closing. However, if you try to back out of the deal, you might have to forfeit the cash to the seller.

A standard EMD is 1% to 3% of the sales price of the home (so, that would be $3,000 to $9,000 on a $300,000 loan). But depending on how hot your market is, you may want to put down more earnest money to compete with other offers.

In most cases, the title company is responsible for holding the earnest money in an escrow account. If the deal falls through, the title company will disburse the funds appropriately based on the terms of the sales contract. Title companies also check for defects or liens on a seller’s title to make sure it can be transferred cleanly to you.

#6 Review the Contingency Plans

Most real estate offers include contingencies — provisions that must be met before the transaction can go through. If not, the buyer is entitled to walk away from the deal with their EMD.

For example, let’s say an offer says the contract is contingent on a home inspection. The buyer will have a set number of days after the offer is accepted to have the property inspected by a licensed or certified property inspector.

If the home inspector identifies problems with the house, the buyer can ask the seller to make repairs. But most repairs are negotiable. The seller may agree to some but say no to others. Or the seller may offer a price reduction or a credit at closing, based on the cost of the repairs. Your real estate agent can offer value and counsel on what you should ask the seller to fix.

Keep your eye on the big picture. If you and the seller are bickering over a $500 repair to the hardwood floors, that’s a drop in the bucket relative to the size of the bid.

Other Common Contingencies

In addition to the aforementioned home inspection contingency, other common contingencies include:

A financing contingency, which gives home buyers a specified amount of time to get a loan that will cover the mortgage.
An appraisal contingency, in which the lender hires a third-party appraiser to evaluate the fair-market value of the home. This validates that the home is worth enough money to serve as collateral for the value of the mortgage.
A clear title contingency, where the buyer’s title company verifies that the seller is the sole owner of the property and can legally convey ownership to the buyer.
A home sale contingency, where the transaction depends on the sale of the buyer’s current home.

Although contingencies can offer protection to buyers, they can also make offers less appealing to the seller. That’s because they give buyers legal ways to exit the sale without any financial repercussions. So, if you’re going up against multiple offers, having fewer contingencies can give you an edge over the competition.

In other words, a chill offer is an attractive offer. But keep in mind you have to be comfortable with the risks of this strategy. If you don’t have a financing contingency, for example, and you can’t get a mortgage, you’d likely lose your earnest money deposit, since you’re on the hook. That outcome is decidedly unchill for you.

#7 Read the Fine Print About the Property

The sales contract states key information about the property, such as the address, the tax ID, and the types of utilities: public water or private well, gas or electric heating, and so on. It also includes a section specifying what personal property and fixtures the seller agrees to leave behind, like appliances, lighting fixtures, and window treatments. The seller provides prospective buyers with a list of these items before the buyers submit an offer. This can be another area of negotiation.

Carefully reviewing the property description also helps you know, for example, if the seller plans to take that unattached kitchen island with them when they move. Stranger things have happened.

#8 Make a Date to Settle

The sales contract you submit to the seller must include a proposed settlement date confirming when the transaction will be finalized. The clock starts as soon as the purchase agreement is signed. If you don’t close on time, the party that’s responsible for the delay may have to pay the other party in the form of “penalty interest” at a predetermined rate.

A 30- to 60-day settlement period is common because it gives the typical home buyer time to complete a title search and obtain mortgage approval. However, settlement periods can vary. Some sellers, for example, prefer a longer period so they have more time to move or look for their next house. Being flexible about the closing date could give you more negotiating power in some area of the deal.

One thing that’s the same no matter where you live is that you’ll have a three-business-day period before settlement to review the closing disclosure, or CD. This five-page form states your final loan terms and closing costs.

Once the sales contract is signed, the parties can change the settlement date if they both sign an addendum specifying the new day.

#9 Brace Yourself for a Counteroffer

If you’re making a lowball bid or going up against multiple offers, the seller may decide to make you a counteroffer — a purchase agreement with new terms, such as a higher sales price or fewer contingencies.

At that point, you can accept the new contract, make your own counteroffer to the sellers, or walk away.

Don’t panic: The next part of our guide walks you through the counteroffer process and offers strategies to give you more negotiating power

Fireplaces • Mold • Uncategorized • January 21, 2025

Is Mold Covered by Insurance? A guide for Homeowners

by Donna Ragland

Is Mold Covered by Insurance? A Guide for Homeowners

By: Melissa Dittmann Tracey

Published: October 31, 2024

Know what’s covered — and what’s not — when it comes to mold issues in the home.

Mold is the dirty little secret many households don’t want to talk about. You can find it lurking in damp corners, under floors, or even inside air vents. It’s a serious issue for your home and your health, and you can’t afford to ignore it.

Mold can damage your home, ruining drywall, woodwork, and more. It can also cause a range of health symptoms, from allergy and respiratory reactions like asthma to skin rashes. And mold can even decrease your home’s value by an estimated 20% to 37%, according to academic research published in the spring 2005 issue of the “Appraisal Journal.” The article is based on litigated toxic mold cases and other research.

Despite the risks, mold is a common household problem. Nearly every indoor environment has mold spores. But you can prevent mold problems. DIY and professional mold remediation solutions can help, but they can be costly. That’s why some homeowners turn to their homeowners insurance to help defray costs.

“Mold coverage in homeowners insurance can vary by case, with not every situation covered,” says Peter Piotrowski, chief claims officer at Hippo, a national property insurance company. “Mold issues are complex to handle due to the difficulty in removing [mold] and tracing its origin — key factors when filing a claim.”

This detailed guide highlights what you need to know about homeowners insurance coverage for mold, plus how to better manage and prevent mold issues.

What is Mold, and Why Is It a Concern for Homeowners?

Mold is a form of fungus that can be found wherever moisture and oxygen exist, according to the U.S. Environmental Protection Agency. It typically grows when excess moisture accumulates and can be found on many surfaces, like wood, paper, carpet, and food, and even in the air you breathe. Mold can quickly spread through tiny reproductive cells called spores, which can travel through the air and around a household. Mold is most commonly found in high-humidity areas, like bathrooms and basements, but can also exist behind walls or under the home’s flooring. (Learn more: Unexpected Places Mold Can Hide.)

Is That Mold?

Color:	Black, white, orange, gray, green, or brown
Texture:	Fuzzy, powdery, fluffy, slimy, or spongy
Smell:	Musty, damp, pungent, or stale
Location:	Found on surfaces like wood, paper, carpet, and food, and even in the air; mold thrives in dark damp spaces

Mold can cause structural damage in homes — for example, to the drywall, insulation, and other building materials. Prolonged exposure to mold can also affect your health. Mold has been associated with respiratory issues, like allergy symptoms and asthma, leading to shortness of breath, runny noses, red eyes, headaches, dizziness, and skin rashes, according to the EPA. Mold exposure can particularly harm children, the elderly, and those with pre-existing illnesses.

When Does Home Insurance Cover Mold?

Standard homeowners insurance policies cover mold remediation only if the mold is caused by a “peril” — a “sudden” or “accidental” event.

“Insurance policies typically outline instances of sudden and accidental water damage, such as mold claims from burst pipes, broken appliances, or overflowing toilets,” says Cassie Sheets, data analyst and journalist at Insurify, an insurance comparison resource. “If the mold isn’t a result of a sudden or accidental event, it will likely not be covered.” For example, an insurer could classify mold from a gradual water leak — like one under the sinks or from basement seepage — as owner neglect, not a peril. Claims for such situations would likely be rejected, Sheets says.

“Reviewing your policy in detail will clarify which mold-related damages are covered,” Piotrowski adds. “Before signing or renewing a policy, it’s wise to research which mold scenarios are included. This way, you’ll know what to expect if a claim becomes necessary, and you’ll be prepared for any deductible or costs involved.”

Mold: What Does Insurance Cover or Not Cover?

Here are some scenarios that are common but that a standard homeowner’s insurance policy may or may not cover. However, insurance policies differ widely, and you’ll want to review you policy carefully.

Events likely to be covered:	Events unlikely to be covered:
A water heater rupture	Mold in the shower
An overflowing dishwasher	An ongoing leak that a homeowner failed to promptly fix
Appliance or equipment malfunction	Damage from a flood or heavy rainstorm (this usually requires a separate flood insurance policy)
Frozen, leaking, or burst pipes	Sewer backup
Water overflowing within a plumbing system, HVAC unit, or appliance	Sump pump failure
Damage caused by the weight of snow, ice, or sleet	Poorly sealed doors or windows
Sudden, accidental discharge of water, for example, from burst pipes	Poor ventilation in high humidity areas, like the bathroom

Sources: Insurance.com and Hippo

When Home Insurance Does Not Cover Mold

In some situations, your insurance may not cover mold damage, leaving you to foot the bill for cleanup. Uncovered insurance claims from mold damages often stem from homeowner neglect in maintenance, Piotrowski says.

Insurance companies often require homeowners to report any mold issues promptly if they’re seeking to file a claim. If a homeowner becomes aware of a mold issue but lets the mold spread — such as with an unaddressed water leak — an insurance adjuster would likely decline a claim because of homeowner negligence, Piotrowski says.

Also, standard homeowners insurance policies typically don’t cover mold issues that were caused by damage before the policy start date or were present before the home purchase, Piotrowski notes. “A thorough inspection when buying a new home can help identify any mold risks” prior to purchasing a home, he says.

Supplemental Home Insurance Coverage Options

Homeowners insurance companies offer endorsements, which provide additional coverage and protection to a home. They can be added to a standard homeowner’s insurance policy.

“If a homeowner wants more protection from mold, they can purchase separate endorsements for comprehensive mold damage coverage,” Sheets says. Homeowners who live in high humidity areas or have homes made with materials more prone to mold — like wood or vinyl —may want to consider purchasing supplemental insurance. But as always, “be sure to compare rates and limits from multiple insurers to get the best coverage,” she adds.

Supplemental insurance, like sewer backup or hurricane coverage, may cover mold if it results from a covered event, Piotrowski says. “Adding a mold endorsement or purchasing flood or hurricane insurance can also increase protection.”

Here are a few add-on homeowners insurance riders to consider for extra protection against mold:

Sewer Backup Insurance

This covers damage from broken sump pumps or clogged sewer lines, which could cause backups in a bathtub, toilets, basement, or other places around the home. The damage may be caused by clogged pipes, tree roots, or broken pipe lines. This endorsement will help pay for repairing a sewer line or removing sewage and water from the house, either of which may have caused the mold. This endorsement is sometimes called “water backup insurance” or “drain line backup coverage.”

Hidden Water Damage Coverage

This provides protection from water leaks that can occur behind walls or cabinets, beneath floors, or in other unseen areas. These types of water leaks could cause major damage over time, leading to extensive mold issues.

Flood Insurance

A flood insurance policy can cover damage caused by water entering a home because of heavy rains, overflowing rivers, or nearby waterways. Still, mold will be covered only in certain situations. The National Flood Insurance Program generally won’t cover mold damages unless the owner can’t access their home because floodwaters remain around the home and are keeping the owners from preventing further damages, according to the Federal Emergency Management Agency.

Windstorm and Hurricane Insurance

Windstorm and hurricane insurance protects properties from damage caused by wind, hail, or hurricane hazards. It typically covers physical damages to the property, including mold that may be caused by water damage, as well as the loss of the owner’s personal belongings.

Mold and Earthquake Insurance

This covers mold damage and earthquake-related losses, addressing gaps left by standard home insurance.

Is It Worth Filing a Claim?

Your homeowner’s insurance policy can help offset pricey home repair costs, but don’t expect it to cover everything. Homeowners will need to factor in their homeowner’s insurance deductible — the amount of a claim they’ll need to pay out of pocket before insurance kicks in. These typically are flat dollar amounts, often ranging from $500 to $2,000.

For example, let’s say you have a $2,000 deductible and you submit a claim for $2,363, which is the average cost of mold remediation in the U.S. Your insurer will pay only $363 toward the cost; you’d need to pay the $2,000 deductible. Homeowners will need to determine if the $363 payoff would be worth it. Keep in mind that insurance companies often raise premiums after you file a claim, with just a single claim raising premiums, on average, by 9%, according to a NerdWallet analysis. That premium could offset the benefit of the claim’s payment.

For minor mold damage — considered less than a three-foot-by-three-foot patch, according to the EPA — you may be able to take steps to remove mold yourself. You can find steps for removing smaller mold patches at EPA.gov. If you have other damage to your home, like from a burst water pipe, or an extensive amount of mold, you may find paying your insurance deductible is a small price compared to the total bill for cleanup.

Home Insurance: Filing a Claim

Follow your insurance company’s policy for filing a claim. But here is a general outline of what’s typically involved.

Steps to File a Claim

Stop any ongoing damage. Call in professionals immediately to stop any moisture source and prevent further damage. Insurance companies expect homeowners to take reasonable action to mitigate damage, even when filing a claim.
Review your policy. Check which situations are typically covered by your insurance policy and if this event likely applies.
Document any damages. Take photos and videos of the mold, showing the location and how extensive it is.
Assess the cause. Most standard insurance policies cover mold damage only if it was caused by a peril or a sudden event, like a burst water pipe. Consider hiring a professional mold inspector or assessor to identify the cause, which can then be included as evidence in your claim.
Notify your adjuster immediately. File claims promptly, as soon as the incident of damage occurs. Complete forms thoroughly and accurately and provide as much detail as possible about the damage.
Follow up. Ask your adjuster about estimated timelines for response after filing a claim. Many companies now have online portals to keep tabs on a claim’s status. Document all communications you have with your insurance company regarding the claim, including dates, times, and the person you spoke with.

What to Do If Your Claim Is Denied

An investigating adjuster in the insurance company will determine the merits of your claim. Often, if a claim is denied, “it’s likely due to an uncovered cause or negligence” from homeowner maintenance, Piotrowski says. “Appeals may not be possible in such cases. Providing clear documentation of the incident’s cause when filing can reduce misunderstandings.” Claims also may be denied because of missing or incorrect information.

If your claim is denied, consider these steps:

File an appeal. Ask the insurance company to review your claim again. Make sure nothing was missing from your original claim that may have resulted in the denial. Be sure your appeal addresses any reasoning specified in your denial letter and include supporting documents and evidence.
Offer additional evidence. Contact a professional mold remediation specialist to evaluate the mold, determine the cause and extent of damages, and estimate costs for removal. Use these supplemental findings in your appeal.
Contact an attorney. Seek legal advice from an attorney who specializes in insurance denials.

Prevent Mold in Your Home

Avoid having to file a claim by taking steps to prevent mold in your home. “Proactive maintenance can help prevent mold issues, as it helps identify and address potential risks before they become costly problems,” Piotrowski says. “Mold prevention is also helpful for maintaining home health.”

The key to mold control is moisture control, according to the EPA’s “Mold, Moisture and Your Home” guide. Homeowners can take a variety of mold prevention steps, such as:

Fix plumbing leaks and water issues promptly.
Dry water-covered items immediately: Water-damaged areas and items must be dried within 24 to 48 hours to prevent mold growth.
Clean and repair roof gutters regularly.
Ensure the ground slopes away from your home’s foundation so that water doesn’t enter or collect around the foundation.
Keep air conditioning drip pans clean and drain lines unobstructed and flowing properly.
Keep indoor humidity low. The EPA advises keeping indoor humidity below 60% relative humidity (ideally between 30% and 50%).
Watch for condensation or moisture collecting on windows, walls, or pipes. This could be a sign humidity is too high in the home.
Vent appliances that produce moisture — like clothes dryers, stoves, and kerosene heaters — to the outside of the home when possible.
Use air conditioners and/or dehumidifiers when needed. (Consider placing dehumidifiers in high-humidity areas like bathrooms and basements.)
Consider smart home devices that track humidity, temperature, and water leaks to alert you to potential mold risks early.
Run the bathroom fan or open the window when showering to vent the area. Also, use exhaust fans or open windows whenever cooking, running the dishwasher, etc.

Related: 10 Mold Prevention Tips for Your Home

Professional Mold Remediation

Mold can be costly to remove and cause health problems if you inhale the spores during removal. You may want to leave it to the professionals, particularly when mold is extensive. The EPA defines that as greater than a three-foot-by-three-foot patch.

Mold remediation services can vary depending on the type of mold and the amount present. On average, the cost of professional removal is $2,363, but it often ranges from $373 to $7,000, according to 2024 data from Angi. Those costs can drastically rise, especially if remediation requires the removal of walls or entire flooring.

Mold remediation services include professional assessment, identifying the extent and type of mold, containment and ensuring barriers are placed in the home to prevent mold spores from spreading during remediation, and removal and cleanup. View more of a cost breakdown and what’s involved in working with professional mold remediation firms.

Can I Just Clean It Myself?

If you spot mold that is less than 10 square feet — or less than a three-foot-by-three-foot patch — you can likely clean it yourself, according to the EPA. For anything larger, the EPA recommends calling in the professionals. For DIY solutions, scrub mold off hard surfaces using just detergent and water. Then, dry the area completely. Also, take precautions to limit your exposure to mold spores, such as by wearing an N-95 respirator, gloves, and goggles. Find more tips at EPA.gov.

Homeowners Insurance: Mold Coverage FAQs

Here are a few commonly asked questions regarding insurance coverage for mold issues.

Is mold coverage typically included in a standard homeowners policy?

Mold is only typically covered by a standard homeowners insurance policy if it’s caused by a “peril,” or sudden, accidental event. Examples might be a burst water pipe or an appliance malfunction, Piotrowski says. Most insurance companies won’t cover damages caused by homeowner negligence or lack of home maintenance, such as a moldy shower. Insurance companies will review claims on a case-by-case basis. Homeowners should review their policies carefully to see what’s included.

Does my homeowners insurance cover replacing damage from mold?

“Generally, insurance may cover remediation rather than replacement [of items], depending on policy terms,” Piotrowski says. Homeowners may seek additional protection against possible damages and events that could result in mold. Protection might be add-on riders to their standard insurance policy (for example, endorsements for hidden water damage, flood insurance, or sewer backup). “Before signing or renewing a policy, it’s wise to research which mold scenarios are included,” Piotrowski says. Also, “this way you’ll know what to expect if a claim becomes necessary, and you’ll be prepared for any deductible or costs involved.”

What are some signs I may have mold damage in my home?

Some signs of mold are clearly visible, like black, green, or white patches on household surfaces. Other signs may be more subtle or even hidden. The only sign may be the smell — a musty scent that may occur in high humidity areas like in bathrooms or basements. Homeowners might experience health issues, like ongoing allergy symptoms, sneezing, watery eyes, skin rashes, or a persistent cough. Other signs could be spotting excessive moisture or condensation on windows or other surfaces (a sign of high humidity in the home that could lead to mold growth), peeling paint or wallpaper, or discolored spots on walls or ceilings. Homeowners can test their homes for mold. Mold testing kits are available at hardware stores, and require collecting samples around the home and sending them for analysis. Or, owners can contact a professional mold abatement specialist for further testing

Fireplaces • Uncategorized • January 20, 2025

Types of Fireplaces and the Pros and Cons of Each

by Donna Ragland

Types of Fireplaces and the Pros and Cons of Each

By: Stacey Freed

Published: December 17, 2024

Before you cozy up to your dream fireplace, explore the various types and options available to find the perfect fit for your home and lifestyle.

When’s the last time you chose to sit in front of your furnace for a romantic or relaxing evening at home? But snuggle up next to a cozy fire? Yes, please. Whether you’re a home buyer or a homeowner looking to remodel, you’re more likely to get a fireplace you’ll use and enjoy if you check out your options carefully. Start by exploring types of fireplaces, including the pros and cons of each one.

How common are fireplaces these days? More than half of all homeowners (57%) have some type of fireplace, wood-burning stove, or other hearth product in their home, according to the Hearth, Patio & Barbecue Association Given the number, you might imagine fireplaces are popular with most buyers. They aren’t currently one of the most in-demand features in homes, but they’re still seen as a plus, according to Angi. And that’s especially true if you pay attention to the type and value of the fireplace.

Whether you’re shopping for a new home with a fireplace or remodeling a current fireplace, you have myriad options that will fit your décor, maximize space, and offer an efficient heat source.

How to Choose the Best Types of Fireplace for Your Home

Whether you have a wood-burning fireplace, a gas fireplace, or an electric fireplace, it will quickly become a room’s focal point. You can choose to make it pop or blend into the surroundings. If you don’t like what you see, you can reface, paint, stain, or remodel the fireplace. But before starting the project, you’ll want to answer some questions to make sure you get what you want:

What design options do you like? You can choose from surround materials ranging from stone to tile to brick. Do you want painted or unpainted? Mantel or no mantel?
What design fits with your home style? Shiplap or reclaimed wood pair well with a modern farmhouse style home. Or do you prefer something sleek and modern — maybe white with a black insert and marble surround? If you don’t have a fireplace and like mid-century modern design, a freestanding fireplace with glass and metal may be a good option.
Do you want to refresh or remodel rather than replace your fireplace? If so, you could repaint the brick surround on the fireplace exterior yourself (using fire-resistant paint). For more-extensive remodeling, make sure the fireplace is in good working condition.
What are your options if you’re moving into a home with a fireplace? Get help to inspect and service the fireplace. A home inspector can do a thorough check. “[We] look at the firebox and the damper and make sure the bricking inside is not cracked,” says Tom Unverzagt, owner of WIN Home Inspection in Smithtown, Long Island, N.Y. Inspectors will look at any steel for buckling and check the chimney for creosote, he says. They’ll scope out the roof, including the chimney top and rain cap, and send a camera into the flue to make sure it’s clear. Another option is a hearth dealer, says Karen Arpino, executive director for three regional affiliates of the HPBA. “Many are chimney sweeps. They can do installs and service. They’ll check the chimney and can discuss remodeling options.”
What are your goals? Adding or updating a fireplace may or may not add value to your home, so make sure your goal is realistic, says Maureen Sweeney, incoming chair of the National Association of REALTORS® Real Property Valuation Committee and a working appraiser. “Don’t make a fireplace purchase based on what you think the return is going to be. It is 100% impossible to say, ‘This is your return on investment.’ Instead, install a fireplace because it will make you happy.”

Types of Fireplaces

Plenty of older homes in the U.S. still have a traditional open masonry wood burning fireplace. This type is what it sounds like: It works by burning wood in a firebox, creating heat through combustion. But that type of fireplace actually robs a home of heat, Unverzagt says. “You have draft; there’s smoke that goes up the flue and draws air from the house into the fire up the chimney and out.” The average wood fireplace operates between 5% and 15% efficiency, drawing almost as much heat up the chimney as it’s producing, according to Energy.gov.

If you’re in that situation, consider retrofitting by having an insert installed covered by heat-resistant glass doors. The change can double the fireplace’s efficiency rate and increase safety by keeping embers and ash in the firebox.

Your next decision is the type of fuel you want to use: wood, pellets, natural gas or propane, or electricity. To make that decision, start with the pros and cons of each.

Wood-Burning Fireplace Pros and Cons

Arpino offers these pros and cons of wood-burning fireplaces:

Pros:

Wood is entirely renewable and when burned “is super warm. You can heat your whole home.”
It’s economical.
The smell of wood smoke and the crackle of burning wood create the ultimate in romantic ambiance.
“The newly certified wood-burning fireplace products — a fireplace or a stove that burns wood or pellets — emit less particulates in the wood smoke per hour than one cigarette.”

Cons:

The heavy lift involved in stacking, loading, and carrying wood, and doing cleanup, isn’t for everyone. “It’s not as fun to do these things as you age.”
Countering those drawbacks are products like pellets, which look a bit like pretzel nuggets. They’re created from compressed dried wood or other biomass, and they burn like logs. They come in bags and are easier to bring into your house than a load of logs. They can produce “an aggressive flame. It’s not a sit-and-gaze kind of fire, but they’re incredible for warmth.” While you can retrofit your wood fireplace to one that burns pellets, you do need a pellet-burning appliance. You also need electricity, since pellets pour into a hopper that feeds them into the stove; the stove then blows out the hot air. EPA-certified pellet stoves are 70% to 83% efficient.

Natural Gas Fireplace Pros and Cons

Natural gas fireplaces are fueled by either natural gas or propane, both of which burn more cleanly than wood or coal. They’ve come a long way, Arpino says, listing these pros and cons:

Pros:

“The fire is beautiful, and the logs no longer look fake.”
They’re highly efficient. They may include a thermostat so the fire will turn off when the room reaches a certain temperature. You can also have a remote start, so there’s no need to even get off the couch. And there’s no ash to deal with.
They can come with a battery backup, so you don’t need to worry about a power outage.
“A gas fireplace is great for the shoulder months — maybe October or March — when you don’t need to heat your whole home but just want to warm your living space.”
If you don’t want gas or don’t have access to it in your home, you can also use propane, a clean-burning, nontoxic gas, as your fireplace fuel.

Cons:

With a gas fireplace you may need a plumber to run a gas line, and some municipalities are discussing whether to ban gas in homes. Locations considering bans are “mostly on the coasts, in places in New York State, California, Massachusetts.” But there are many exceptions in each state, and “at the same time, the industry is evolving when it comes to using propane and biogasses.”

Electric Fireplace Pros and Cons

These fireplaces run on electricity and are essentially electric heaters made to look like wood-burning or gas fireplaces.

Pros:

You can create the visual ambiance of a real fire — with options for heat or no heat. And you can choose your own adventure in the fire bed with faux logs, crystals, river rock, or pebbles.
They’re easy to install. You can put them nearly anywhere; you basically just need an electrical outlet.
With no chimney needed, this can be a less expensive option than installing a wood fireplace or gas fireplace.
Technology is improving the appearance of the flame, which is created with LED lights and reflective panels. New options include the ability to change the flame color.
They are highly energy efficient.

Cons:

Some think the flame, which isn’t real, is less attractive. However, advances have made some flames look more realistic.
You’ll need a backup power source if there’s a power outage.

Any of these types of fireplaces can be installed in a home that’s being constructed.

Modern Fireplace Types to Enhance Your Home

As technology evolves, so do our options for adding warmth and comfort to our homes. Modern fireplace innovations offer exciting new ways to enjoy the ambiance of a fire without the need for traditional setups. Here are some of the latest options available:

Ventless Fireplaces Pros and Cons

Ventless fireplaces — those with no chimney venting to they outdoors — have generated concerns about releasing unsafe emissions inside the home, and some cities have banned them. But some newer versions of ventless, like the alcohol-based fireplaces, are more environmentally friendly. These ventless appliances burn ethanol (made from renewable resources like corn) and isopropyl alcohol gel. You can put them in any location. There’s no gas line or electricity to contend with. They emit a minimum of steam vapor and carbon dioxide with no toxic smoke. They do create a flame and maybe a little heat, depending on the model.

Pros:

They can be placed in any location.
They don’t need for a gas line or electricity.
They’re environmentally friendly options (ethanol and isopropyl alcohol gel).
They emit minimal steam vapor and carbon dioxide.
There’s no toxic smoke.
They create a flame and may provide some heat, depending on the model.

Cons:

There are safety concerns based on the release of unsafe emissions indoors.
Some cities have banned them.

Water Vapor Fireplace Systems Pros and Cons

A water vapor system is sort of an illusion. The design is really for ambiance, as there’s no actual flame. It’s a fireplace where water that sits in a reservoir is used as the “fuel.” An ultrasonic atomizer uses high-frequency soundwaves to vibrate the device and turn the water into mist. It’s then illuminated with LEDs, which make the vapor appear to flicker. These are realistic and safe, since there’s no fire, smoke, or carbon monoxide produced, just water vapor. There’s no chimney, no venting, and little maintenance. Some of these devices offer a heating feature. You can find them at dealers that have electric fireplace options.

Pros:

They create a realistic flame-like appearance.
They’re safe to use (no actual fire, smoke, or carbon monoxide).
They produce only water vapor.
They don’t need a chimney or venting
They require little maintenance.
Some models offer a heating feature.
They add ambiance to any room.

Cons:

They’re primarily designed for ambiance, not heating.
They have a higher initial cost.
They’re available only through specific dealers with electric fireplace options.

How Much Do Different Types of Fireplaces Cost?

The costs of your fireplace project will depend on the nature of the work you want done and factors like material, labor, and fuel costs. Here’s a sampling:

Purchasing: The costs to buy a fireplace range significantly. An electric fireplace costs $200 to $2,200 depending on size, heat output, style, and labor cost (if you want it inserted into a wall, for example), according to Angi. A more- advanced type of fireplace, such as a water vapor fireplace system, costs $3,000 to $9,000.
Remodeling: The costs to remodel a fireplace are all over the map depending on your location and labor and material costs. Angi puts the average fireplace remodel at $600 to $4,500 for refacing, depending on the materials you choose. Refacing a fireplace means replacing the material that surrounds the firebox. Replacing the mantel alone costs $1,000 to $5,000, depending on the size and material, and whether it’s prefabricated or custom made.
Retrofitting: Retrofitting a wood-burning fireplace might cost $9,000 to $10.000, says Jennifer Deuel, co-owner of Cricket on the Hearth, a certified dealer in Rochester, N.Y. “It’s labor intensive; there’s roof work and heavy lifting.” She says 80% of her customers are turning their traditional wood-burning fireplaces into gas fireplaces. “With gas we may have to bring up gas from the basement or use propane from outside the house,” Deuel says. “We need an electrician and a plumber. This might cost between $6,500 and $9,000 depending on the quality of the unit and the length of the gas line work, as well as whether we need to take a lift to the top of the chimney.”
Using the fireplace: With a gas fireplace or electric fireplace, your utility bill will likely increase based on how often you use the fireplace. For a wood fireplace, consider that a cord (128 cubic feet) of wood runs from $150 to $500 depending on the type of wood and your location, according to Angi. If you have a wood fire twice a day, a cord would last six to 12 weeks. Wood pellets cost about $5 to $9 for a 40-pound bag. If you kept your pellet stove burning for 24 hours, you’d go through one whole bag. Natural gas prices in the U.S. are expected to rise sharply in 2025, according to Reuters. That will likely affect how often you use a gas fireplace.

The Impact of Fireplace Options on Your Home’s Market Value

Appraisers don’t usually attribute a quantifiable value to fireplaces, because what the amenity adds to a home’s resale value depends on what an individual buyer prefers. And that’s unpredictable. Instead, they encourage focusing on what you and your family will use and enjoy.

How Different Types of Fireplaces Can Offer Unique Tax Benefits

If you’re upgrading and creating a more efficient fireplace system in your home, you may qualify for a tax credit for biomass-burning products (wood and pellets). A 30% biomass stove tax credit is available for appliances installed between Jan. 1, 2023, and Dec. 1, 2032, capped at $2,000.

Whether and how much to invest in a fireplace ultimately comes down to your goals, Sweeney says. “How often will you be using the fireplace? Is the fireplace intended to help heat your home during the winter months? Is it just for the holidays? What’s the cost of a wood-burning fireplace with a carved wood mantel that will be used once a year for the value of a family’s Hallmark moment? These are questions to consider before considering installing a fireplace.