There are a lot of reasons to consider adding a backup generator to your home. It can protect your home in the event of a power outage, help you power important medical equipment and keep you supplied with well water, among other various benefits.
But are there also financial benefits to using residential generators? More specifically, is there any proof of home generators adding value to a property?
The value of peace of mind is one thing, but actual, tangible property value is another. Here’s what you need to consider before making a home generator investment.
Perceptions from prospective home buyers
Much of the value of a home has to do with how it is perceived by potential buyers (in addition to how it measures up to comparable homes). People browsing the market for homes are specifically looking for properties that are attractive, but also safe, comfortable and practical.
Backup generators have increased in popularity in certain parts of the country where significant storms are common. It’s not hard to see why—not only do these generators serve as a failsafe in a worst-case scenario, but they also can increase home value by up to 5 percent, according to Consumer Reports. A different report from Remodeling Magazine in 2014 indicated backup generators can provide a 150 percent return on investment. This means if you spend $10,000 on a brand-new backup generator for your home, you could increase your home value by up to $15,000.
It’s also important to consider the financial impact associated with insurance. Insurance companies will often reward their customers for taking extra safety precautions, and installing a backup generator certainly qualifies here. A backup generator protects most of your home’s important appliances, electrical infrastructure and the home’s structure itself from potential damage, which decreases the chance you will need to file an insurance claim.
With the presence of a backup generator, you may be able to obtain some discounts on your homeowners insurance policies. Depending on where you live, discounts may range from 5 to 10 percent off your policy when you provide proof that you have a permanent whole-house generator installed by professionals with the proper experience to perform the job.
Is the investment worth it?
Whether the investment is worth this potential increased value and insurance discounts is really up to you. Everyone’s needs vary, and if you don’t find a generator to be something necessary for your home, then it’s not worth spending the money to get one just to add a little more value to your home or pay a little less for your insurance premiums.
However, if you do have a serious need for a generator, these financial benefits are just a couple more reasons to make the investment and give your home the power backup it needs.
For more information about installing a whole-house generator and how you may be able to enjoy increased home value with residential generator installation, contact the team at J & B Air Conditioning, Heating & Gutters today.