33 ways to save at home

Kiplinger's Personal Finance Magazine, Sept, 1998 by Elizabeth Razzi

Ready to take on a little "value engineering" this fall? Just as lean-and-mean corporations constantly look for ways to cut their cost of production, we've looked at expenditures big and small to come up with good ideas that will help you trim expenditures on what's probably your biggest asset--your home.

SQUEEZE THE KILOWATTS

1. RETIRE THE WAR-HORSE FURNACE AND AIR-CONDITIONER. Replacing your 20-year-old, 70%-efficient furnace with a new, 90%-efficient model would cut your fuel bill by 22%. That's a saving of $92 a year, on average. Likewise, replacing an older central air-conditioning unit, which might have a seasonal energy efficiency ratio (SEER) as low as 6 or 7, with a high-efficiency, 12-SEER unit could save you $125 on average each year. Replacing the AC and furnace at the same time, instead of one at a time, could save $700 in labor on a typical job. On the Internet, check www. energystar.gov for a list of appliances that rate the government's Energy Star label.

2. BUY THE SMALLEST CENTRAL AIR-CONDITIONER THAT WILL DO THE JOB. You'll be more comfortable because it will run longer and draw off more humidity--yet use less electricity over the years. One-third to one-half of home air-conditioners are too big, according to the U.S. Department of Energy.

3. FRONT-LOAD YOUR LAUNDRY EXPENSES. And back-load your savings. Maytag's Neptune washing machine is a super-efficient front-loader. It costs $1,130--almost double the price of a comparable top-loader. But it uses 38% less water and 58% less energy. Front-loaders also spin your clothes dryer than top-loaders, cutting time ill the dryer. The combined savings can add up to $100 a year, so you will recover the extra cost of the machine in five or six years.

4. UNPLUG THE EXTRA FRIDGE. An inefficient 20-year-old model with a top-mounted auto-defrost freezer runs up your electric bill by $118 a year. (A new fridge uses only about $50 worth of electricity a year.) At least disconnect it when Old Man Winter has what it takes to keep your beer and soda cold in the garage.

5. INSTALL COMPACT FLUORESCENT BULBS. Put three compact fluorescents in that hard-to-reach ceiling fixture and you'll save $120 in electricity over the seven-year life of the bulbs (even after you've recovered the investment in bulbs)--and a lot of time on stepladders, too. The $15 price tag on the Philips EarthLight universal bulb sounds expensive compared with a four-pack of ordinary incandescents that sell for less than a buck. But the Philips fluorescent burns only 20 watts to provide light comparable to a 75-watt incandescent. The Real Goods catalog (800-762-7325; www.realgoods.com) sells a variety of energy-saving gadgets, but check the home-center stores first for lower prices.

6. INSULATE YOURSELF. Installing 6-inch-thick rolls of R-19 fiberglass insulation in a 1,500-square-loot attic could cost $350--but will pay off in lower air-conditioning and heating bills for as long as you live there.

REASSESS YOUR INSURANCE

7. SHIELD YOURSELF FROM LIABILITY WITH AN UMBRELLA. Most homeowners policies provide $100,000 in liability protection. A good auto policy should cover at least $100,000 per person and $300,000 per accident for liability. But you may need more. The best way to raise your protection is with an umbrella liability policy. The $250 to $300 annual cost of a $1-million policy could save you more than anything else you've ever bought. You may need to have your auto and homeowners coverage from the same company to get the broadest protection, including coverage for risks such as accusations of libel and slander. That may garner a discount of about 10% on each policy.

8. SHOP FOR REPLACEMENT-COST COVERAGE FOR YOUR HOME. You'll pay about 10% extra for such a policy--but it will pay the full cost of rebuilding your home. And if you have to make a claim for the loss of, say, your ten-year-old dining-room set, you'll get the money to buy a new one.

Some large insurers are capping replacement-cost guarantees of the structure at 120% to 125% of the thee amount. You need to know what 100% means. If you doubt your agent's estimate, get a contractor's take on how much it would cost to rebuild (see "Home," Aug.).

9. FILL GAPS IN COVERAGE OF YOUR COMPUTER AND EXPENSIVE ELECTRONICS. Some homeowners policies have a $5,000 or $10,000 limit on electronic equipment, according to the Insurance Information Institute. Even with replacement-cost coverage, you might need to beef up that limit to cover your computer, big-screen TV, satellite dish, video camera and audio equipment. You can boost you]' coverage for $50 to $100 per year.

10. RAISE YOUR DEDUCTIBLE. Frequent small claims could prompt your insurance company to drop you at renewal time anyway. So paying for the small losses yourself could save big in the long run. Raising your deductible from $250 to $500 will cut your premium by about 12%. Raise it to $1,000 and you'll cut the premium by 24%.

BUILD, FIX OR REMODEL FOR LESS

11. ADD JUST A TOUCH OF THE FANCY STUFF. If your kitchen's too big (or your budget's too small) to swath all the counters in granite ($100 per linear foot and up), just add some highlights in the most prominent areas, such as kitchen islands, and install laminate everywhere else (less than $20 per foot). The same trick works with expensive flooring.