Can home upgrades lower Your insurance costs?

I saved roughly $620 on my homeowners’ insurance with one phone call. Sure, we invested roughly $20,000 in a new roof to secure that savings. But we needed the roof desperately and were mindful to get it done before hurricane season here in the Northeast. The cash savings on our insurance is, honestly, a bonus. We weren’t sure if our roof would last another year in its current condition.

Read:More personal finance content from Nifty 50+

Discover:I’m a estate planning expert; here’s what you need to know before you die

If you live in an older home, you, too, may dread the inevitable repairs or upgrades that come up after 15, 20, or 30 years. On the bright side, upgrading before systems break down, shingles fall off, or windows develop leaks can save you money in the long term. But certain home upgrades may also reduce your home insurance premiums immediately, leading to substantial savings.

“Certain upgrades to your roof, security system, or weatherproofing can help make your home more resilient — and may qualify for discounts on your insurance premium,” said Pete Piotrowski, Chief Claims Officer at Hippo Insurance.

Piotrowski shared a run-down of other improvements and repairs that can shave money off your home insurance bill in many states. If your provider isn’t willing to offer a discount, you could also save money by shopping the policy to other carriers.

New roof

As I learned after calling my insurance agent, updating your roof can save roughly 20% on home insurance in some states, depending on your insurance carrier and the roofing materials chosen. “Insurers generally view a newer roof as better equipped to handle the elements,” Piotrowski said. “While there’s a large upfront cost, it’s a long-term investment.”

In some cases, failing to replace an older roof could lead to surprise costs. “Some providers limit what they'll cover if a roof is past a certain age,” Piotrowski said.

Weather protection upgrades

More than one-quarter (27%) of homeowners reported more frequent strong winds and even tornados in recent years, according to Hippo’s 2026 Housepower Report.  Upgrades like storm shutters, defensible landscaping to prevent the spread of wildfires, and removing trees that could present a danger to your home in a storm may lower your insurance rates – or keep your insurance company from raising your rates or worse, dropping your policy.

“Check with your insurer to see if you qualify for discounts and ask which home improvements may apply,” Piotrowski said.

Updated siding

Certain types of home siding, including fiber cement, steel, or composite siding, may lead to home insurance discounts depending on where you live, since these materials tend to be sturdy and fireproof.

Whatever building materials you choose for your home’s exterior, an upgrade is likely to help keep rates low. Siding or shingles that are old and in disrepair could lead to premium rate increases.

Monitored security systems

While I had my insurance agent on the phone, I asked about discounts for our Ring doorbell, lighting, and outdoor cameras. These may qualify for discounts if the system is professionally monitored.

“Check with your provider before making changes,” Piotrowski suggested. “They may have a list of approved security devices, including monitored systems, motion sensors, and security cameras.” 

Water leak detection

Plumbing issues affected more than one-third (34%) of homeowners last year, according to Hippo’s report. While floods aren’t covered by most regular home insurance policies, water damage from leaks is a major cause of claims.

“Water damage is among the most common reasons homeowners file an insurance claim,” Piotrowski said. That’s why many home insurance providers are willing to offer premium savings if you invest in monitored leak sensors and whole-home shut-off valves.

Not only can you save money on insurance premiums, but you can save yourself major headaches and repair costs. “Early-warning leak sensors and whole-home shut-off valves can help you catch small plumbing issues like a slow pipe leak or a failing supply line before they require significant repairs,” he said.

Accessibility upgrades could increase insurance costs

Not all home upgrades lead to lower insurance premiums, Piotrowoski pointed out.

If an older parent is moving in with you, requiring accessibility renovations to your home, these may not be covered under your policy. 

“Completing renovations like the addition of ramps, wider doorways, or bathroom modifications may affect your homeowner's insurance,” Piotrowski said. “Your liability limits may also need adjustment if the renovations increase visitor traffic.”

These home improvements could increase your taxes in certain states

Likewise, some home improvements that raise the value of your home could lead to higher property taxes and increased insurance rates.

In general, renovations that add to your home’s footprint, such as finishing a garage or building an extension, could increase your property taxes in certain states. If a building permit is required for the renovation, the changes to your home could lead to higher taxes.

However, elements like a new roof, if it’s considered part of regular maintenance, may not increase your taxes. “Not all permitted work results in tax increases, especially if the improvement is maintenance-focused,” according to Property Tax Solutions, a law firm in Cook County, Illinois.

However, if the new roof is considered a major upgrade that boosts your home’s value, your property taxes could jump if your state or local municipality decides to reassess your property, according to PropertyTaxSolutions.com.

Rules vary by state and municipality so it’s best to ask a tax professional in your area how major renovations or home improvements could affect your property taxes.

Related: Many homeowners are putting their retirement in jeopardy