Potential damage

Over the five-year period leading up to 2007, water damage and freezing accounted for the second largest share of homeowner insurance claims, according to Claire Wilkinson of the Insurance Information Institute. The average homeowner claim for such damages was $5,531.

Ice dams are responsible for cracked plaster ceilings and walls, peeling paint, soaked carpets, and buckled wood floors. Less visible but no less destructive effects include drenched insulation, rotting joists, and the formation of mold. The most common form of ice dam-related damage is collapsed rain gutters, which can cost $100 to $300 per side to repair.

What causes ice dams

As heat rises from a home, it melts the accumulated snow on the roof. That melted snow travels down the roof in liquid form until it reaches the eave line and gutter, where it refreezes due to colder temps. This ice ridge continues to expand, blocking the flow of subsequent snow melt.

As water continues to melt higher up the roof, it collects behind the ice dam in the form of a puddle. Because that water sits over the warmer portion of the roof, it doesn’t freeze.

In order for ice dams to form, there needs to be roof snow buildup, home heat loss, and subfreezing temperatures. The more snow, the larger the heat loss, and the longer the subfreezing temperatures remain, the higher the likelihood that ice dams will materialize.

Preventing ice dams

Homeowners can’t control the weather, but they can do something about heat loss. “The main goal is to keep heat from reaching the roof, thus preventing snow melt in the first place,” explains Doug Bruell, president of Cleveland’s 25-year-old North Coast Insulation. Proper insulation and ventilation of the attic space is intended to keep the roof surface at or near outdoor temperatures.

Typical steps include insulating the attic floor and installing soffit, gable and/or ridge vents to expel heat. Folding attic stairways and recessed light fixtures also need to be insulated. “All penetrations into the attic from the heated living space need to be addressed,” adds Bruell. Homeowners can expect to pay $800 to $1,500 to insulate the attic, plus another $300 to $600 for the installation of vents.

The process is a bit more involved for homes with finished attics, says Bruell. To facilitate sufficient cold air flow from soffit vent to ridge vent, baffles or tubes are installed between the ceiling insulation and the underside of the roof. This might involve opening up the ceiling.

Insulation means savings

According to the U.S. Department of Energy, adding insulation to an unheated attic will have a greater impact on energy consumption than placing it anywhere else in the house. A properly insulated and ventilated attic not only reduces winter heating bills, it will trim summer cooling bills by expelling heat buildup. You can expect to save 10% to 50% on your heating and cooling bills.

In addition, you may qualify for a federal tax credit of up to $500.

Deicing alternatives

In theory, roof rakes, brooms, and other long-handled devices can be used to remove snow before it has a chance to melt. In practice, however, the scheme is difficult to pull off, considering that most homeowners can’t reach all areas of the roof.

Electrically-heated deicing cables, which install along eave lines to inhibit water freeze, are only moderately effective, says Bruell. “These heat cables often just back up the problem, forcing the dams to form higher up the roof.” In addition to the purchase price ($150 to $300), and installation ($300 to $500), these cables require electricity to run. They also can shorten the life of roof shingles.

Ice dam removal

Homeowners suffering the effects of an ice dam—or those who fear a leak is imminent—can hire a roofing company to remove the ice buildup. Rather than employ hammers, chisels, and salt, which can damage the roof and gutters, technicians will steam away the ice and remove any remaining snow. Expect to pay around $500 or more for the service. It goes without saying that do-it-yourself removal can be dangerous when it involves ladders, heavy ice, and slippery roofs.

If your budget is really tight, a free-standing gel-fuel or electric fireplace eliminates installation costs. But be aware that some bare-bones alternatives don’t completely succeed in mimicking a real wood fire.

Check local building codes for possible restrictions on the types of fireplaces that can be installed in your area.

Costs of a wood-burning fireplace

An open-hearth, wood-burning fireplace—like the ones you see in mountain resort hotels—requires the help of a skilled, professional mason and a budget approaching (and often exceeding) $10,000.

For an existing home, considerable renovation work is required, including a foundation to carry the weight of the firebox and chimney, and the cost of the chimney itself.

Expect to pay $7,000 to $10,000 or more.

• Cost saver tip: Go for a drywall surround and a simple, wall-mounted mantle.

Costs of a gas-burning fireplace

A fireplace unit that burns natural gas or propane runs about $2,000 for the basic materials package. Installation and finishing typically add $2,500.

• Cost saver tip: Switch to a simpler surround and mantle, and get a direct-vent fireplace so you don’t need a chimney. Or, opt for a vent-free gas fireplace for $400 or so. Hiring a professional to install a gas line or a connection to a propane tank adds about $1,000.

Your least-expensive option

A gel-fuel fireplace or an electric fireplace starts under $400. With a portable unit, that’s the total cost since the fireplace is ready to use once you remove the packaging.

Because there’s no flue or chimney, it’s easy to install TVs or other electronic gear directly above an electric fireplace. If you include a mantel package, expect to pay $800 to $1,600. One perk available: sound effects that mimic the crackle and pop of a real fire.

Ongoing costs

Estimate your energy costs by using a fuel cost comparison calculator. Gel fuel, not included in the calculator, costs $3 per 13-ounce can, enough for three hours.

For a wood-burning fireplace, figure on $100 to $200 a year for chimney cleaning. Gas fireplaces need an annual service check ($100 to $150) plus a chimney inspection. Gel-fuel and electric fireplaces don’t need regular maintenance.

Tax credits for fireplace inserts

Through Dec. 31, 2011, you may qualify for a federal tax credit for up to $300 in costs, if you install a biomass (wood-or pellet-burning) fireplace insert that’s at least 75% fuel-efficient.

1. Only burn dry, cured wood—logs that have been split, stacked, and dried for eight to 12 months. Cover your log pile on top, but leave the sides open for air flow.

Hardwoods such as hickory, white oak, beech, sugar maple, and white ash burn longest, though dry firewood is more important than the species. Less dense woods like spruce or white pine burn well if sufficiently dry, but you’ll need to add more wood to your fire more often, according to the Chimney Safety Institute of America (CSIA).

2. Burn firewood and only firewood! Crates, lumber, construction scraps, painted wood, or other treated wood releases chemicals into your home, compromising air quality. Log starters are fine for getting your wood fireplace going, but they burn very hot; generally only use one at a time.

3. Close the damper when not using your wood fireplace to prevent warm indoor air—and the dollars you’re spending to heat it—from rushing up the chimney.

4. Keep bifold glass doors open when burning a fire to allow heat to get into the room. On a factory-built, prefab wood fireplace with a circulating fan, keep doors closed to prevent unnecesary heat loss.

5. Have a chimney cap installed to prevent objects, rain, and snow from falling into your chimney, and to reduce downdrafts. Caps have side vents so smoke escapes. A chimney sweep usually provides and can install a stainless steel cap, which is better than a galvanized metal one because it won’t rust. Caps cost $50 to $200.

6. Replace a poorly sealing damper to prevent heat loss. A top-mounted damper that also functions as a rain cap provides a tighter closure than a traditional damper for your wood fireplace.

7. Install carbon monoxide detectors and smoke detectors in your house—near your wood fireplace as well as in bedroom areas.

8. Get your chimney cleaned twice a year if you burn more than three cords of wood annually. A cord is 4 feet high by 4 feet wide by 8 feet long, or the amount that would fill two full-size pickup trucks.

9. To burn a fire safely, build it slowly, adding more wood as it heats. Keep the damper of your wood fireplace completely open to increase draw in the early stages. Burn the fire hot, at least occasionally—with the damper all the way open to help prevent smoke from lingering in the fireplace and creosote from developing.