10 Home Upgrades That Can Lower Your Insurance Bill

With the cost of homeowners insurance rising in recent years, it's smart to seek out ways to lower your premiums — including ways to change your property to reduce the likelihood or size of a claim on your policy.

If you're willing to make some investments in your home, there can be ways to improve your house and save money on homeowners insurance in the bargain. These are the top home upgrades that can produce cost savings on your insurance policy. We've divided the list into seven that should lower your bill more immediately, and three others that might do so in the longer term.

We've also added typical costs for these improvements, since in all cases you need to invest upfront in order to enjoy subsequent insurance savings.

1. Home Security System

If you have a monitored home security system, you may qualify for a discount on your premiums. The discount amount varies by insurer, but many companies offer a discount between 2% and 15%. According to Policygenius, homeowners who installed security systems saved an average of $100 per month on their insurance.

Cost: $150 and up for many systems, plus fees for service that start at about $25 a month.

2. Impact-Resistant Roof

A number of windstorm-loss mitigation measures — beginning with a wind-resistant roof — can both protect your home and reduce your insurance premiums. Depending on where you live, and the age of your current roof, installing a new one that meets state wind mitigation standards could allow you to qualify for a discount on your insurance. For example, in Florida, state law requires insurers to provide homeowners with a discount for protecting their homes with approved wind mitigation measures, such as switching to a different roof shape or changing the shingles. Other features to make your roof more resistant to wind include hurricane clips or straps that hold the roof to the walls.

Although the discount varies by state and insurer, having roofwork done could save as much as 15% on home insurance costs.

Cost: $2,000 and up for a 2,000 square foot home, but the cost could easily go far higher.

3. Impact-Resistant Glass

Glass that remains intact in bad weather can mitigate costs, not only by minimizing window replacement but interior damage from wind and rain entering the home. If you live in an area prone to wind or hurricane damage, installing impact windows can help you save money – typically on the windstorm component of your policy. In some counties and states, insurers give substantial discounts for impact-resistant windows, as well as related features such as impact-resistant doors, especially the one in the garage.

Cost: $300 and up per window.

4. Updated Electrical System

If you have an older home, updating your wiring and electrical systems can produce substantial savings. Not only will it improve the efficiency of your home, but updated wiring lowers the risk of fire damage, so some insurers will give you a discount on your homeowners insurance premiums.

Cost: $10,000 to $30,000 is typical for upgrading the entire system in a home.

5. Updated Plumbing

Older homes may have faulty or leaky pipes, old septic systems or outdated hot water heaters. These issues put you at risk of significant — and costly — water damage. Updating your plumbing and replacing old pipes can help you save money.

Cost: At least $1,500 for extensive plumbing improvements, and a whole-house upgrade could easily run to five figures.

6. Energy Efficiency Features

With many companies focusing on green initiatives, some insurers give incentives for homeowners to make their homes more energy efficient by offering discounts for green homes. Discounts vary by insurer, but you generally need to meet green home standards set by the Leadership Energy and Environmental Design (LEED) organization. Insurers may reduce your premiums by as much as 5%.

Cost: The average tab for upgrading the insulation in your home is $1,268, according to the New York State Energy Research and Development Authority. But the bills can easily run into the thousands if the home's windows are replaced or for comprehensive re-insulation.

7. Seismic Retrofitting

If you live in an area prone to earthquakes, seismic retrofitting — a process of updating a home to strengthen it and make it more likely to withstand a hurricane — can produce substantial savings. For example, California homeowners can save as much as 25% on their homeowners insurance premiums.

Cost: Between $3,000 and $7,000 for a standard-sized home, according to the California Residential Mitigation Program

3 Indirect Updates That Can Save You Money

Not all updates will immediately produce a discount. However, there are some updates or improvements you can make that can help you save money over the long run:

1. Motion-Detection Lights

While insurers may not offer a discount for installing motion-detection lights (unless they're connected to a monitored security system), lights activated by motion sensors can be a powerful theft deterrent. Burglars tend to target homes that aren't well-lit, so your home is less likely to be selected if it lights up as it is approached. That can reduce your risk of a break-in, and so of having to file a claim.

Cost: Typically $350-$500 according to fixr.com.

2. Landscaping

Updating your landscaping by trimming large trees, cutting back hedges or bushes and replacing dead plants can help you save money in two major ways:

• Reducing the risk of theft: Burglars often look for homes with limited visibility. Homes with lots of shrubbery, trees or hedges have more hiding places, so they're more likely to be targeted. By trimming your landscaping, you improve the visibility of your home, and make it less likely to be targeted.
• Reducing the risk of damage: By trimming trees and ripping out dead plants, you reduce the risk of tree branches falling into your home or a fire starting near it. You're less likely to have to file a claim for property damage, helping you save money over time.

Cost: About $3,500 on average, according to home improvement site Angi, but with a typical range of about $1,250 to $6,500.

3. Maintaining HVAC Systems

Maintaining or replacing your heating and air-conditioning systems can help lower your energy costs, but it also can prevent any issues from becoming serious problems. Dirty or malfunctioning HVAC systems can cause fires or leaks and cause substantial damage, so catching those issues early will help you save money over the long run.

Talk to your insurance agent or contact several insurers to discuss what insurance discounts you may qualify for as a homeowner in your state. You may be able to reduce your premiums based on your home's latest renovations, or by other means – such as bundling your homeowners coverage with an automotive policy.

Cost: About $7,500 is typical to replace a full HVAC system, according to home improvement site Angi, with replacement of only a furnace or AC system costing between about $2,000 and $6,000.