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5 home improvement ideas to lower your insurance costs

What we'll cover

  • Repairs to help you save on insurance

  • Upgrades to avoid costly repairs

  • How to invest in your home's safety

As a homeowner, the idea of remodeling your home to create your little slice of paradise can be exciting. But did you know it could also lower your insurance premium?

These renovations that usually qualify for homeowner's insurance discounts might be less flashy and more functional. But with the average cost of home insurance sitting at about $2,400/year, every deduction matters.


A new roof can have one of the most significant impacts on your homeowner's insurance rate. The state of your roof is one of the first things an insurance company takes into account when assessing your risk of filing a claim.

Replacing aging and leaky shingles could discount your policy by more than 30%. But a new roof is a considerable investment (between $6,000 and $13,000 depending on size and condition) so you should only consider upgrading if yours is getting up there in years or you're experiencing a leak.

A new roof can have one of the most significant impacts on your homeowner's insurance rate.


Window replacement can be costly, with an average price of around $300 per window. But you can recoup some of those costs (and enjoy easy-to-clean, draft-proof frames) since new windows can earn you a 10 to 15% credit on your insurance. And if you live in a disaster-prone region, you can snag additional discounts by installing storm shutters and shatterproof windows.

Added bonus: New, energy-efficient windows can also save you an average of 12% on your energy bill.

Plumbing and pipes

Plumbing can also be a considerable risk for insurers.

The price to re-pipe can range from $1,500 to $15,000, but with the average water damage claim running more than $12,000, it can pay to proactively replace your pipes before they're leaky and decaying (or worse, causing a flood in your basement). Saving you the expense of repairing your water-logged residence and possibly a better insurance premium rate too.

Electrical wiring

Just as out-of-date plumbing is a flood risk, frayed and deteriorating wiring can be viewed by insurers as a fire hazard that can hike your rate. An excellent guideline to follow is if your home or electrical work is more than 40 years old, you may require rewiring. Expect to pay around $5 to $17 per square foot, as well as the price of replacement breaker switches and a new fuse box.

Home security

You'll likely want to leave the roof, windows, plumbing and electrical work to the professionals, but DIY security upgrades like deadbolts, smart locks, burglar alarms, security systems and even smart home devices can save you up to 20% on your premium. Insurance carriers may provide significant discounts if you install more than one type of protective device or if your security system boasts features like 24/7 professional monitoring.

The savings add up

Remodeling comes with its own costs, so finding savings where you can is essential. With these renovations, you can improve your home's safety and perceived risk, and lower your costs for your homeowner's policy — a win-win for home savings .

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