Home Renovations That Lower (or Raise) Insurance Costs

For many homeowners, renovations are a way to improve comfort, boost property value, or simply refresh the look of a space. But did you know that your home improvement projects can also affect your insurance premiums? Depending on the type of work, your costs could go down—or up.

Here’s a practical guide to how renovations impact insurance and what you should consider before you start swinging the hammer.

Renovations That May Lower Your Insurance Costs

1. Upgrading the Roof

A new, sturdier roof reduces the risk of leaks, storm damage, and costly claims. Many insurers offer discounts for impact-resistant materials designed to withstand wind and hail.

2. Installing a Security System

Adding burglar alarms, surveillance cameras, or smart home monitoring devices can lower the likelihood of theft or vandalism. Insurers often reward added security with premium savings.

3. Updating Electrical or Plumbing Systems

Replacing outdated wiring or pipes reduces fire and water damage risks. These upgrades not only improve safety but can also prevent future claims, which insurers look favorably on.

4. Adding Storm-Resistant Features

In areas prone to hurricanes, tornadoes, or heavy storms, features like reinforced windows, storm shutters, and stronger doors can reduce damage risk and qualify you for credits.

Renovations That May Raise Your Insurance Costs

1. Building an Addition

Adding square footage—whether a new bedroom, garage, or sunroom—raises the cost to rebuild your home. More space equals higher replacement value, which means higher premiums.

2. Installing a Swimming Pool or Hot Tub

While fun, these features increase liability risks (accidents, injuries) and often require more coverage. Expect your premiums to rise if you install them.

3. High-End Kitchen or Bathroom Remodels

Luxury finishes like marble counters, custom cabinetry, or spa-style bathrooms increase your home’s overall replacement cost. If damaged, it costs more to repair or replace, raising insurance needs.

4. Home Office or Business Space

Converting part of your home into a workspace may affect your policy. You might need additional coverage for business equipment, liability, or even clients visiting the property.

How to Stay Ahead

• Notify your insurer before or after major renovations. They can help adjust coverage so you’re fully protected.

• Ask about discounts—not all cost-lowering renovations are automatic.

• Keep documentation (receipts, permits, photos) for your records.

Final Takeaway

Home renovations don’t just change how your home looks—they can reshape your insurance needs and costs. Whether your goal is saving money, improving safety, or adding value, it’s smart to keep insurance in mind while planning.

👉 Thinking of renovating? Talk to RISE Insurance first—we’ll help you understand how changes affect your coverage and premiums.
📞 423-541-1111