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10 Home Renovations That Affect Insurance Rates

Some home improvement projects like a new roof or storm-proof windows will help lower your insurance costs, but others can have the opposite effect.

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Backyard Swimming Pool water features Gettyimages 155377305 Bball PoolTimAbramowitz/Getty Images

Installing a Pool

A new pool is a great way to beat the summer heat and have friends and family gather at your home. However, pools come with certain expenses, including your insurance. Homeowners are liable for anyone using their pool, and that means a bump in the cost of your home policy, according to Value Penguin.

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Redoing the Roof

A new roof will not only give you peace of mind, but save you money on home insurance rates. Policy discounts for a new roof can be as much as 20 percent, according to Clovered.

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Adding a Home Security System

Like a new roof, adding a home security system will help you sleep better at night, knowing you’re protected. You’ll be happier about your insurance costs, too. Policy Genius says installing a burglar alarm or home security system can save you between two to 10 percent on insurance premiums.

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Purchasing Smart Devices

Smart devices are great for functioning in your home, and in some cases can even lower your insurance rates. A report by Fox Business says smart devices like thermostats, smoke detectors and more may reduce your premiums, depending on the company.

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Home ExtensionJames Osmond/Getty Images

Building an Extension

A home extension means more square footage to your property, and almost certainly more value to your home. With more value, however, comes a need for more insurance coverage.

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Updating Electrical Wiring

Deteriorating wiring is a fire hazard and subject to higher insurance rates, according to The Simple Dollar. It’s best to make sure your wiring is safe and up to code.

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Installing Storm-Proof Windows

Depending on the region where you live, new storm-proof windows are a great option to lower your utility costs and drive down those insurance premiums.

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Purchasing a Backup Generator

A backup generator will keep the lights on and power running during a storm or severe weather. Insurance companies will see an emergency generator as extra protection from burst pipes during a frigid spell, or replacing perishables after a lengthy power outage.

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Updating Plumbing and Pipes

Poor plumbing can lead to a wide range of issues in and around your home, and water damage is one of the most common homeowner insurance claims.

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Installing Fencing

Installing a fence around your property can add curb appeal, provide privacy and even lower your insurance premiums by limiting potential liability lawsuits.

Alex Shoemaker
Alex is an avid DIYer but had little experience before purchasing his first home in 2019. A Family Handyman subscription was one of his first purchases after becoming a homeowner, and he's been hooked ever since. When he’s not working, he can be found fixing up his 1940s Florida home or relaxing on the beach with his family.