Security systems, smoke detectors, and new plumbing don’t just make your home a safer, more comfortable place. Some upgrades can also reduce your home insurance premium.
Miranda is a financial writer and avid podcaster with nearly two decades of experience contributing to major outlets, including Forbes, The Hill, and NPR.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
If you haven’t looked closely at your home insurance policy, you could be missing out on significant discounts for home upgrades. Insurers determine homeowners insurance rates using numerous factors, like your home’s age, ZIP code, and building materials. While you can’t change certain things, a few improvements could reduce your home insurance premium.
Installing a new security system, adding smart home features, replacing your roof, and upgrading your plumbing are among the home upgrades that can help you save. Next time you’re looking for a home improvement project, consider these fixes to lower your homeowners insurance rate.
Compare Home Insurance Quotes
Unlock savings and discounts when you compare policies
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
1. Replace your roof
Replacing your old roof might help you lower your homeowners insurance rates because a new roof will better protect against wind damage and reduce the risk of leaks, especially in hurricane-prone areas.
A new roof could lower your rate by 5% to 35%, according to home improvement services site Angi.[1] Discounts vary among insurers, but most companies have guidelines for eligible materials based on impact and wind resistance. The Insurance Institute for Business & Home Safety provides shingle performance ratings to help you find the most durable option.
Newer roofs often have better materials and updated features. If you replace your older roof with one more likely to withstand a hurricane or fire damage, you could see lower rates from home insurers. You’ll typically pay between $5,700 and $16,000 for a roof replacement, depending on the roof’s size and the materials used.[2]
2. Install a home security system
Installing a security system in your home could reduce your insurance rates since it can lead to a lower chance of theft and other vandalism damage to your home. Whether your insurer will reduce your premium depends on the type of system you install, your policy, and whether the alarms go straight to a dispatcher rather than simply alerting you.
Good to know
On average, home security systems cost $500 and $900 to install, including equipment, according to HomeGuide. Costs may vary depending on the system’s quality and whether you pay an agency to monitor your home.[3]
3. Upgrade your wiring
If your home has old or outdated wiring, such as knob-and-tube wiring, there’s an increased chance that it could cause a fire and lead to a home insurance claim. Upgrading your home’s wiring can lower your risk and make your home safer. Replacing your electrical panel can also reduce fire risk, potentially lowering your home insurance rate.
Make sure to hire a licensed electrician if you plan to make updates to your home’s electrical system.
4. Upgrade your plumbing
If you live in an older home, you may have outdated cast iron or galvanized steel pipes that are more likely to corrode or rust. Upgrading your old pipes to a modern material, like copper or CPVC plastic, can reduce your risk of leaks and water damage.
Repiping a house costs an average of $1,254, according to contractor services site HomeAdvisor.[4] But a plumbing upgrade could lower your home insurance rates or make you eligible for discounts.
5. Install smoke detectors and a sprinkler system
Fires can cause extensive damage to your house and personal belongings. A fire can cause about $3,107 to $51,243 in restoration costs, according to Angi. For example, restoring your kitchen after a fire can cost up to $20,000, depending on the type of damage.[5]
Insurance companies often provide incentives for installing a sprinkler system or smoke detectors. Sprinkler discounts can be as high as 35%, according to a Home Fire Sprinkler Coalition survey.[6] But discounts vary by insurer, so it’s best to check your company’s website or speak to an insurance agent to learn how much you can save.
6. Get rid of your pool
Standard homeowners insurance typically covers swimming pools, but you’ll pay a higher premium if you have one. Home insurance companies consider pools an “attractive nuisance” because having one increases the risk of a lawsuit if someone gets injured while using it.
If you installed a pool in your home, you’re probably not eager to get rid of it just to lower your home insurance premium. But if you inherited a pool and don’t want to deal with the upkeep, filling it in could help you save time and money on maintenance and lower your home insurance costs.
7. Use smart home technology
Devices like doorbell cameras and automatic lights can help you protect your home and keep other costs down. Plus, you can monitor what’s going on while you’re out of town and act quickly if there’s a problem.
Ask your insurer about any discounts for smart technology home improvements. On average, converting your home to a smart home can cost anywhere from $200 to $1,645.[7] Your monthly costs may be higher if you have smart home gadgets and active monitoring by a third party.
Water damage and freezing accounted for nearly 28% of homeowners insurance losses in 2022, according to the Insurance Information Institute. The average claim was for more than $13,954, making water damage an expensive fix for insurance companies.[8]
An automatic water shut-off valve monitors the flow in your home’s pipes or detects groundwater, then shuts off the water supply if it senses any irregularities. Some insurance companies lower your premium upon renewal or offer discounts for these detectors since they can prevent severe water damage. Ask an insurance agent to find out which devices qualify.
Other ways to lower homeowners insurance costs
You have plenty of other ways to lower your insurance costs, including:
Increase your deductible. If you’re willing to pay more out of pocket, you could see lower rates. Additionally, paying your premium annually might result in discounts.
Ask about additional discounts. Ask your insurance agent which home insurance discounts you qualify for. In addition to discounts for making home improvements, you could also get loyalty, claims-free, or policy bundling discounts.
Comparison shop. Use online insurance quote websites to compare companies and get the best deal on your insurance coverage.
Bundle your insurance policies. Consider combining your homeowners insurance with your car insurance. Many companies offer a discounted rate when you bundle multiple policies.
Build good credit. A high credit score might result in some savings for your insurance premiums, as most insurers consider your credit history when setting premiums.
Find Affordable Home Insurance
See quotes from top home insurance companies
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
4 home improvements that can increase home insurance costs
Not every home improvement leads to lower premiums. In some cases, you might see higher insurance costs due to greater liability or an increase in the market value of your home. Here are some home improvements that might increase your home insurance premiums.
Putting in a pool
Having a swimming pool increases your home’s liability risk. Insurers usually consider pools a safety risk, so you might pay higher premiums after installing one. Some insurers may even refuse to cover your home if you have a pool.[9]
You may be surprised to learn that your insurer might not cover your home office and its equipment. Even if it does, coverage is often limited. You might need to increase your coverage, which can lead to higher insurance premiums.
If you run a business out of your home, you might want to consider a home business insurance policy for added protection.
Building an addition to your home
Building an addition typically increases the value of your home, which could result in increased premiums, as the extra square footage increases how much your insurer would need to pay to rebuild it. You probably won’t need a new policy, but you might need to increase your coverage limits.
Upgrading your bathroom or kitchen
Similar to building an addition, remodeling your bathroom or kitchen can increase your home’s replacement cost value — especially if you use high-end fixtures and materials. If your home’s replacement cost increases, your insurer could raise your rates.
Do you need more home insurance coverage after a renovation?
Depending on the extent of your home renovation or improvements, you’ll likely want to increase your home insurance coverage.
For example, a home addition increases your square footage, which means your insurance company would have to pay more to replace your home. Increasing your dwelling coverage limits can help you ensure you have adequate protection in the event of a total loss.
An insurance agent can help you determine whether and by how much to increase your limits.
Factors that affect your homeowners insurance costs
A few common factors affect how much you’ll pay for home insurance, including:
Square footage
The size of your home is one of the main factors that affect your home insurance costs. A bigger home generally costs more to replace and rebuild, so you’ll typically pay more to insure it.
Location
Another key factor that insurers consider when setting insurance rates is where you live. Some ZIP codes may have a greater risk of severe weather, theft, or flooding, so insurers factor that into your policy’s cost.
Age of your home
Older homes might cost more to insure than newer ones, especially when they have outdated systems. Insurers usually consider factors like old electrical wiring, plumbing, roofs, and more when setting home insurance premiums.
Other issues
Many other factors affect home insurance premiums, including whether you have certain dog breeds, a swimming pool or trampoline, a home office, or anything that an insurance company might consider to be a hazard.[10]
Home improvements to lower insurance FAQs
If you’re thinking about making improvements to your home, check out the additional information below about how it could affect your home insurance rates.
Should you tell your insurance company about renovations?
Yes. You should report changes to your home to your insurance company. Home improvements often affect a home’s value and risk level, which may change how your insurer writes your policy.
Will homeowners insurance pay for home renovations or repairs?
Homeowners insurance typically won’t pay for regular repairs or improvements. For the most part, insurers only cover items related to damage from covered events, such as natural disasters, vandalism, and theft.
Does a new furnace lower home insurance?
It’s possible. If you have an older furnace in your home, replacing it with a newer one can make your home safer and more energy-efficient. In addition to lowering your utility bills, your insurer may offer a discount for replacing your furnace.
What affects home insurance premiums the most?
Your location and the size of your home are two main factors that insurance companies take into account when determining how much you’ll pay for a policy. For example, if you live in an area at high risk for severe weather events, such as tornadoes or hurricanes, your coverage will cost more.
What is an attractive nuisance in home insurance?
An attractive nuisance is something that might attract children to your property and poses a danger to them. Swimming pools and trampolines are common examples of attractive nuisances.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
Dwelling coverage: $300,000
Deductible: $1,000
Personal property limit: $25,000
Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
Miranda Marquit, MBA, is a freelance financial writer covering various markets and topics since 2006. She has contributed to numerous media outlets, including Forbes, TIME, The Hill, NPR, HuffPost, Yahoo! Money, and more. Her work has been syndicated by MSN Money, Marketwatch, Credit.com, and other publications. She has written about insurance topics for Clearsurance, HealthCare.com, and various other websites. She is also an avid podcaster and co-hosts the Money Talks News podcast. Miranda has a Master’s Degree in Journalism from Syracuse University. Connect with her on LinkedIn.
Miranda has been a contributor at Insurify since October 2022.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
)
)
){kind=logo}
){kind=small}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
){kind=small}
)
)
)
)
)
)
)
)
)
)
