The siding is an often unheralded component of the home. When properly installed, it helps to maintain the interior temperature and protect the residence from the elements, while also making the home's exterior look more attractive.

It might be time to replace the siding if you're no longer satisfied with how it looks. You may also need to update it if certain imperfections are causing problems inside your home.

For homes with wooden siding, the most obvious time to do an update is when you notice signs of rot. The home sustainability resource Modernize.com says rotted siding typically looks duller than wood in good condition. Once it has started to crumble and weaken, the siding will be considerably less effective against the elements. Warping siding can also be an indicator of rot.

Periodically inspect the siding to see if there are any signs of damage, such as loose siding, cracks, gaps, or holes bored by birds or insects. Donna Boyle Schwartz, writing for the home improvement professional Bob Vila, says this damage not only looks bad, but also offers a way for water or pests to enter your home.

If you're noticing moisture issues inside your home, problems with the siding might be to blame. Hedrick Construction, a company in Huxley, Iowa, says you may notice water stains on the walls and bubbling paint on the exterior. Look for these issues after heavy rainfalls and storms so you can quickly remedy them.

A problem with the siding can also announce itself through higher utility bills, as cracks and other openings will let exterior in while allowing heated or cooled air to escape. However, you should first check to make sure that this issue can't be traced to another source, such as higher electricity rates, a leaky roof, or drafty windows.

New siding can be a good investment when completed as part of a larger home improvement. Andy Lindus, writing for Angie's List, says correcting an outdated color can improve your curb appeal and boost the property's resale value. If you're putting on an addition with updated siding, consider replacing the siding everywhere to create a consistent appearance and extend the benefits of the new material to the rest of the home.

Certain kinds of siding will need more maintenance than others, or will be more vulnerable to damage. Modernize.com says wood will require regular staining or painting while aluminum siding is susceptible to dents and scratches. Options like vinyl or Hardie board are more resilient and require less maintenance, so you may decide that it's preferable to upgrade your siding instead of completing the necessary repairs or upkeep on the current material.