Making improvements to your home can be one of the most exciting things that you do. It can bring increased value to your home, new usage of previously-unused space and personalization to the place where you spend a lot of your time.

Most people don’t think about how home improvements can affect their home insurance premiums. Many improvements can actually increase the cost of annual premiums, either because they increase the value of the home or they bring with them additional risk.

For instance, homeowners that add extra square footage often consider increasing the amount of their home insurance policy because the size and value of their home increases after the project is done. Likewise, while adding a feature such as a pool might increase the value of your home, it also increases the risk of someone getting injured on your property, which can increase your home insurance premium.

There are some home improvement projects that can actually lower your home insurance. Below, we’ll discuss some of those projects and why they affect your premium this way.


Roof replacements and repairs can be costly and rather large jobs. At the same time, they could provide you with significant savings. For one, newer roofs are more energy efficient than older ones, which can lower your monthly energy bills.

In addition, you might be able to qualify for a discount on your home insurance policy for installing a new roof. Your insurance company may require you to install a certain roof type or use specific materials to qualify, so check with the company before getting it installed.


Any time you install security features at your home, you could potentially qualify for a discount on your home insurance plan. Even small security upgrades such as fire alarms and deadbolts can have a sizeable impact on your insurance bill.

The larger security projects will provide you with the most savings on your insurance bill because they provide your home with the best protection possible. This includes a security system that’s fully monitored by an experienced and reputable company, or even a sprinkler system that notifies emergency services in case of a fire.

Other security systems based on smart technology such as water moisture meters could also qualify you for certain home insurance discounts.

Smart Technology

Speaking of smart technology, these systems are becoming increasingly popular because they are becoming much more affordable than they once were. And since most people have a smartphone attached at their hip, they have the ability to monitor many things at their home while they’re not there.

Some of these smart home technology systems can even save you money on your home insurance policy. This would include systems that detect water leaks and automatically shut off the water, sensors that identify a gas leak or a freezing pipe, smart locks and remote carbon monoxide detectors.

All of these smart technology systems again reduce the risk of major damage at your home, which can reduce your home insurance premium.

Major Systems

The internal systems that run your home are often the most expensive to replace, but they also provide many benefits when you upgrade them. From an energy perspective, upgrading your home’s electrical system, plumbing and HVAC can all save you a significant amount of money off your monthly bills.

From an insurance standpoint, old or aging major systems provide some of the biggest risks of damage to your home. In other words, when you replace pipes that are aging, you reduce the likelihood of a major leak caused by a pipe burst. When you upgrade your HVAC system, you reduce the likelihood of an accidental fire.

Any time that you are reducing the risk of damage being done to your home and property, you’re likely to receive a discount on your home insurance policy.

Outdoor Lighting

Outdoor lighting can bring a lot of personality, warmth and literal glow to your home, and it can also provide a lot of safety, too. You might not think about outdoor lighting in this fashion, but it actually makes your home significantly safer.

Proper outdoor lighting can be a huge deterrent to potential burglars. In addition, it provides lighting to driveways and pathways, which in turn makes them much safer for people to navigate.

It’s possible that your home insurance company might provide a discount off home insurance policies based on outdoor lighting, depending on where it is installed and what type of system is installed. Your insurance company might, for example, require the lighting to be installed in a particular place or for you to use a specific type of lighting like motion sensors that work off LED.

In addition to potentially getting a discount on your home insurance policy, outdoor lighting is one of the quickest and least expensive ways to increase your home’s curb appeal. So, in essence, it’s one of the best improvement projects you can complete at your home.

Work with a Trusted Company Like Signature Insurance

There are many home improvement projects that can actually lower your home insurance premium. The ones mentioned above could potentially provide you the biggest bang for your buck in this regard.

But, keep in mind that not all of these home improvement projects are guaranteed to provide you an immediate discount on your insurance policy. Whether the projects would actually reduce your premium or not could depend on a number of different factors.

That’s why it’s important that you work closely with your home insurance company to see which home improvement projects might qualify you for a discount, and which projects could increase your premium.

At Signature Insurance, we work closely with all of our clients to help them through the insurance process. We don’t just provide insurance coverage; we walk you through all the opportunities you have to save money off your premiums.

Get insurance today!

At Signature Insurance we want to help you understand your insurance coverage options so you make the best decision.

Contact us at (586) 274-9600 and we’ll be happy to get quote for you from many of the top auto insurance companies or home insurance companies in Metro Detroit.