If you’re thinking about renovating your home, it’s probably safe to assume that you not only prefer a remodeling project that adds curb appeal – but one that will also increase the value of your home.

Good news: You don’t have to go all out to accomplish this. In fact, a simple project – like replacing your siding – could offer a big payout.

Wondering how else siding can increase the value and attractiveness of your home? Keep reading to find out.

Siding Replacement Offers Many Return-On-Investment (ROI) Opportunities

Yes, a financial ROI is probably what is most important to you when considering whether or not to replace your siding. However, depending on the type of material you choose, siding replacement could offer a variety of ROI opportunities…

Curb Appeal: If your goal is to catch the eye of a potential buyer, replacing your siding “can make your home more appealing and could sway an uncertain buyer toward your home over another,” says David Leopold, owner of Pillar To Post Professional Home Inspection in Fairfield, Connecticut.

Low-Maintenance: Some types of siding, like vinyl, require little to no maintenance. Leopold adds that with vinyl siding, people don’t have to make a substantial investment in painting a home every 10 years. “Avoiding that big ticket while still having a consistently beautiful home is a very appealing notion,” he adds.

So, while your neighbor’s paint is slowly chipping and flaking off the house, all you’ll need to do with your vinyl siding is give your home a quick pressure wash to remove mildew and you’re good to go, says Leopold.

Financial ROI: According to the Remodeling Magazine’s “Cost vs. Value Report 2013,” siding replacement has a return investment between 71.8 percent and 79.3 percent, depending on the material you choose. This is how much of your investment you’ll recoup when you’re ready to sell your home. Not too shabby, right?

Energy Efficiency: Insulated siding has become increasingly popular over the past few years, according to Kriss Swint, director of interactive and design strategy at Royal Building Products. Why? “Because it’s still aesthetically pleasing and architecturally correct, but it has the added bonus of additional insulation that can help reduce energy costs,” Swint explains.

Why You Should Consider Vinyl Siding

There is a variety of siding material available, from wood to vinyl and aluminum. However, if budget is a factor in deciding which material to go with, vinyl may be the winner over the other materials, as it’s not only cheaper to install, but also to maintain, says Leopold.

And while the vinyl siding of yesterday gained something of a deserved reputation for being rather unattractive, that’s all over now. In fact, vinyl siding that looks like shingles has been a game-changer and is gaining a lot of traction for its beauty, ease of maintenance, and durability, Leopold explains.

What’s more “vinyl siding doesn’t rot and termites won’t eat it,” according to Leopold.

In terms of its versatility, vinyl siding now comes in virtually every desirable color and shade, and can be applied to any home, Leopold says. No matter what style your house is, there’s a vinyl product that will match.

“Take for example the seemingly challenging match like preserving the details on a Victorian home,” Leopold says. “Vinyl shingles are available in saw tooth and clamshell shingle patterns with vinyl dentil molding.” These are designs and colors that will work with an older home and match colors and patterns perfectly, Leopold explains.

Timeframe for Siding Replacement

Leopold says that a quality vinyl siding installation can be done in about the same time as a quality paint job – which is about two weeks for a typical size home. And keep in mind that vinyl siding is generally faster to install than wood siding.

That said, siding replacement is also dependant on a number of factors that include the size of your home, whether or not siding needs to be removed before installing a new one, and more.

The only way to get an exact timeframe is to talk to an expert and provide them with the specifics on your home and siding needs.

Every severe storm that hits seems to bring scads of sad stories of homeowners discovering that their insurance policies didn’t cover them for as much as they had expected. That can mean huge unanticipated expenses.

So before the next big storm hits, be proactive. You may not be able to escape Mother Nature, but you can be better prepared by reviewing your homeowner’s policy to make sure you’re adequately protected.

“Wouldn’t you rather know now what’s covered and what’s not rather than later, when you have to file a claim and find out the insurer won’t pay?” asks Robert Hunter, director of insurance for the Consumer Federation of America.

MISTAKES YOU’LL WANT TO AVOID

As you read through your homeowner’s policy, see if you’re making any of these four mistakes and take the appropriate steps if you are:

Mistake No. 1: Underinsuring your house.

Insurance experts say failing to have enough insurance to cover the cost of rebuilding your house if it’s destroyed is the biggest mistake homeowners make. Amy Bach, executive director of the consumer advocacy group United Policyholders, says one 2009 study found that two-thirds of U.S. homes are underinsured.

Why? For one thing, many homeowners buy only enough insurance to cover the amount of their mortgage. But the mortgage may be, at most, 80 or 90 percent of the value of the house, depending on the original down payment (less, if the home has appreciated in value).

For another, some policyholders insure an amount equal to the current value of their homes. But this figure may be far less than the actual cost of rebuilding your house, including labor and supplies (and both of those may rise sharply after a storm when there’s big demand and short supply).

What should you do? First, calculate how much it would cost to rebuild your house.

You could ask your insurance agent, but Bach encourages you to use a professional home-replacement cost estimator, who’d likely provide a more accurate number. The fee can run about $300, but some insurers offer this service for free to their high-value customers.

Alternatively, you could ask a local real-estate agent, builder, contractor or building association for the average rebuilding cost per square foot in your area or pay for an estimate from the websites HM Facts or Accucoverage.

Once you know what it would cost to rebuild, see if your coverage is close to that figure. If it isn’t, increase your protection.

When estimating your rebuilding cost, remember to add in what you’d pay to replace any special features in your house, such as marble floors or high-end woodworking.

To avoid making this calculation every year, ask your insurer about an automatic inflation provision. Of course, this may raise your premium.

You might also consider instead getting extended replacement coverage, which means the insurer would pay up to 125 percent of your policy limit to rebuild your home.

The top of the line protection — and the most expensive option — is “guaranteed replacement cost coverage,” where the insurer will pay to rebuild your home no matter what it costs.

Be sure you’re adequately covered for your valuables, including jewelry, art, antiques and computer equipment, too. A good tool to take an inventory is the free software and iPhone/Android app, KnowYourStuff.org, from the Insurance Information Institute.

Ask your insurer how much you’d get if your belongings needed to be replaced. The figure could be based on what the items are now worth or what it would cost to replace them, a better, but more expensive alternative. Don’t overlook buying extra coverage, known as floaters or riders, for jewelry, electronics or art since policies ordinary limit protection for valuables.

Mistake No. 2: Assuming you have flood insurance.

This coverage is not part of a standard homeowners contract. If you live near a lake, river, flood plain or the ocean, you should definitely buy it. (You may be required to have flood insurance in order to get a mortgage in certain places.)

But coastal area homes aren’t the only ones that need flood insurance. Inland areas near water can sustain serious flood damage from ground water too, even in hurricanes, says Michael Barry, the institute’s director of media relations.

“That was a huge problem in Hurricane Sandy and even more so the year before, with Hurricane Irene which caused inland flooding in New Jersey; Albany, New York; and even Vermont,” he says.

Flood insurance isn’t hard to get; it’s a federal program that accepts everybody who wants the coverage.

The price varies, depending on your risk of flooding and the amount you want. You could pay $55 a year for $8,000 of above-ground, contents-only coverage in a low-risk area or over $8,000 for $250,000 “basement and contents” coverage in a high-risk area.

What should you do? Determine whether you need extra coverage by visiting the National Flood Insurance Program’s site, FloodSmart.gov. If you find your home is at risk, ask your insurer if it will sell you flood insurance. The answer is usually yes.

If not, the Federal Emergency Management Agency site has a list of private insurers that sell and service flood insurance policies.

Don’t delay; there’s a 30-day waiting period between buying a policy and the date your coverage begins. So act now, before the heavy spring rains.

Mistake No. 3: Thinking you have one, flat deductible.

You might believe your maximum out-of-pocket cost would be $500, $1,000 or whatever amount you said when you bought your policy. Wrong.

In the case of named storms, like hurricanes or such major weather events as windstorms and earthquakes, the deductible often becomes a percentage of your coverage. So it could wind up being 1 to 5 percent of the insured value for a flood or as much as 10 to 15 percent of coverage for an earthquake.

So, if your house is insured for $300,000, but you sustain damage in a windstorm, you could be socked with a $15,000 deductible when you file your claim.

What should you do? Ask your agent or insurer if your policy has different deductibles, depending on the cause of damage.

If so, inquire about getting a policy that has the same flat-rate deductible no matter what. This may be hard to find and will be more expensive.

Stuck with a potentially sky-high deductible? Then be sure you have enough in emergency savings to come up with the cash, if necessary.

Mistake No. 4: Believing you’re covered for mold or sewage backup.

Many homeowner’s policies don’t offer this protection or have claim limits.

What should you do? Inquire about additional coverage for protection from mold or sewage backup (which is often a problem in large downpours).

The cost of coverage for sewage backup isn’t terribly expensive, about $40 to $50 a year. It’s worth buying.

But mold insurance can run about 10 times that much — if you can find it.

So, assess your risks to determine if you need mold protection. Odds are you do if you live in a humid area or your house is old and was built without mold-resistant materials (the newer the home, the more likely it’s been made with them).

Despite the high cost, mold coverage could be a worthwhile expense since the cost of removal is quite high. And insurance, after all, is to protect you against large expenses.

Busting the budget is everyone’s biggest fear when it comes to renovation. And with good reason. Even if you follow the essential advice we’ve been doling out for years—build in a 20 percent cushion to cover the nasty surprises, get contractor references and check them, banish the words “while you’re at it” from your vocabulary—it’s hard not to end up shelling out more than you want to, even if you want to pen a check for a million bucks. 

But why scale back a project or forgo that Viking range? No, what you need to do is get your dream at a price you can afford. And not by cheaping out, either. With some strategic thinking about design, materials, and timing, you can cut costs without cutting corners. We’ll show you the ways, from the big to something as small as choosing a wall sconce over a recessed light. But another universal truth about renovations is that every little thing adds up. So save a little here, save a little there, and pretty soon you’re talking about real money. To see even more ways to save on your remodel, visit This Old House online.

1. Increase efficiency, not size.

If you can reorganize and equip your kitchen for maximum utility, you may not need to blow out the walls to gain square footage. Start by replacing space–hogging shelves with cabinet–height pullout drawers 8 inches wide, containing racks for canned goods and other items. “You’re getting three or more horizontal planes where you might otherwise get only one,” says Louis Smith Jr., an architect with Meier Group, in Ann Arbor, Michigan. You could easily shell out a few thousand to outfit cabinets with upgrades like dividers, pull–out pot trays, and lazy Susans, but you’ll save many times that amount by skipping the addition you thought you needed.

[Want to create more space in your kitchen? Click to find the right contractor now.]

Cost to expand kitchen by 200 square feet: $48,000 to $95,000 Cost of super–efficient, custom–designed cabinets: $35,000 SAVED: Up to $60,000

2. Donate your trash.

Before you begin a remodeling job, invite the local Habitat for Humanity chapter to remove materials and fixtures for later resale. “About 85 percent of a house is reusable,” says B.J. Perkins, Habitat’s ReUse program manager, in Austin, Texas. “We can do a total takedown, or do a cherry-pick job and take the cabinets, the tub, the sink, and so on.” You save space in the landfill, collect a charitable tax credit for the donation, and help a good cause. Visit Habitat’s website (see Way to Save #3) to find an affiliate near you.

Cost to trash a suite of bathroom fixtures: $50 to $75 Cost to donate: Nothing, plus you get a tax deduction SAVED: Space in the landfill (and a little bit of your soul)

3. Consider long–term costs, not just short–term gains.

If your addition calls for clapboard siding, for instance, you can save more in the long run by ponying up now for the preprimed and prepainted variety. It costs an extra 10 to 20 cents per foot, but “you’ll wind up paying for half as many paint jobs down the road,” says Paul Eldrenkamp, owner of Byggmeister, a design–build remodeling firm in Newton, Massachusetts. The reason? Factory finishes are applied on dry wood under controlled conditions—no rain, no harsh sun. “I used prefinished claps on my house about ten years ago and the only flaw in the finish is the occasional mildew spot, easily washed off,” Eldrenkamp says. “The paint looks as if it’ll be good for another ten years, easily.”

[Time for new siding on your home? Click to find a contractor now.]

Cost of unfinished siding for a 10–by–40–foot addition, plus two paint jobs: $5,000 Cost for prefinished claps and one coat of paint at installation: $3,750 SAVED: $1,250

4. Limit recessed light fixtures.

“The more recessed lights you put in, the more it’s going to cost,” says Tom Silva, This Old House’s general contractor. In addition to the fixtures, there’s the labor to cut all the holes and insulate them properly. A wall– or ceiling–mounted light can also deliver more wattage, which means you may be able to get away with fewer fixtures.

Cost to install six can lights: $900 Cost to install one surface–mounted fixture of equal wattage: $300 SAVED: $600

5. Consult an architect.

Depending on the scale of your project, you might not need a full–on architectural commission, which involves extensive meetings, multiple job–site visits, and several sets of construction drawings, to the tune of about 8 percent of a project’s construction budget. You might be able to tap an architect’s design savvy by having him undertake a one–time design consultation. For example, for a $400 flat fee, Baton Rouge architect Kevin Harris will meet with a homeowner, examine the problem, and sketch out a few solutions that could be as simple as opening up a partition wall or moving a door. The homeowner can then give the sketch to a builder or take it to a drafting service, which will charge about $1 to $1.50 a square foot to crank out formal construction drawings.

Architect’s fee to design a 300–square–foot home office: $2,250 Fee for design consultation only and plans: $580 SAVED: $1,670

6. Partner with a contractor.

Though the practice is controversial among the trades, some contractors will offer consulting and mentoring services to skilled do–it–yourselfers on an hourly basis. Chicago–area builder Ted Welch charges $150 per hour for such coaching, with a two–hour minimum commitment. “The most satisfied clients tend to be those who have good manual dexterity, who realize that skills need to be practiced in order to be perfected, and who are willing to risk making a few mistakes and then learn from them,” he says.

Cost to drywall one room: $1,000 Cost with DIY consultation: $300 (2 hours of coaching), plus materials SAVED: $700

7. Make sweat equity count.

Unless you’ve got loads of time (and expertise) to spend on your project, the best way to add sweat equity is upfront, by handling your own demolition, or at the back end, by doing some of the finish work yourself. “If you want to save money, dig in and start helping out,” says Tom Silva. “You can insulate, you can paint, you can sand.” Or better still, he says, help with cleanup every day. “Instead of paying someone to pick up sawdust off the floor, put your money into the time it takes to trim the window properly,” he advises.

Cost for construction crew to handle cleanup: $200 per day Cost to do it yourself: $0 SAVED: About 3 to 5 percent of the overall job cost

8. Wait until contractors want your business.

Don’t schedule your reno in the height of summer or between September, when the kids go back to school, and Christmas. “That’s premium time,” explains Lisa Stacholy, owner of LKS Architects, in Atlanta, Georgia. Suppliers tend to be busier, labor scarcer, and deliveries slower. One Virginia–based contractor offers discounts of between 4.5 and 5.5 percent (depending on the overall budget) on projects during his down time, right after the new year.

[Click to find the right contractor now.]

Cost of a major bathroom remodel in peak season: $25,000 Cost in January: $23,625 SAVED: $1,375

9. Skip the foundation.

If local code allows, you may be able to support a small addition on posts and beams, as you would a deck, explains contractor Dennis Gavin, of Gavin Design–Build, in Media, Pennsylvania.

220–square–foot addition with poured foundation: $40,000 Same–size addition on posts and beams: $35,000 SAVED: $5,000

10. Don’t move the kitchen sink.

Or the toilet, if you can avoid it. “That often becomes the biggest part of the plumbing–price increase,” says Richard Trethewey, This Old House plumbing and heating expert. If your new layout requires that you move the toilet, use the opportunity to upgrade the pipes at the same time. “That will save you money in the long run,” says Richard.

Cost to move toilet more than 3 feet: $500—$1,000 Cost to leave in existing location: $0 SAVED: Up to $1,000

11. Plan with stock sizes in mind.

“Ask yourself, ‘Why am I building something 10 feet wide if plywood comes in 4–foot–wide sheets?’” says Lisa Stacholy, of LKS Architects, in Atlanta. The same applies to stock windows and doors: Use manufacturers’ off–the–shelf dimensions from the outset and you will save the premiums of custom fabrication.

Cost of custom doors: $1,500—$2,500 Cost of standard doors: $500–$800 SAVED: Up to $2,000

12. Make decisions early.

Start prowling the aisles at the hardware store or home center way before the wrecking crew shows up. Get a good feeling for what you want in fixtures and appliances and what they cost. If you aren’t absolutely specific up front about what you want, you’ll have to rely on your contractor’s estimate, called an allowance, and his notion of what is acceptable may be quite different from yours. “Ninety–eight percent of the time, allowances are too low,” says Tom Silva. For instance, you may have had a glass–tile backsplash in mind, but your contractor’s bid was for ceramic.

Cost to plan ahead: $0 Cost of change orders midstream: The difference in the item price, but also time lost to project delays and communications glitches SAVED: Up to thousands

To see even more ways to save on your remodel, visit This Old House online.