Home Upgrades That Can Lower Your Insurance Risk

Some home upgrades make your home feel cozy. Others help prevent the kind of damage that leads to expensive claims. Both are valuable, but only one can improve your risk profile.
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Water, wind, hail, fire, and severe storms make up a large share of yearly homeowner losses. Certain upgrades can help reduce the likelihood or impact of those events, and many insurers consider them when pricing a policy.
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Do Leak Detectors and Water Shutoff Systems Lower Your Insurance Risk?

They can reduce your risk, and some insurers may offer credits for monitored shutoff devices. Smart leak detectors and automatic shutoff valves can stop a slow leak before it becomes a major repair. If you already have one, tell your insurer. Credits vary by insurer and state.
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Smart leak detectors and automatic shutoff valves can stop a slow leak before it turns into a major repair. Water damage is one of the most frequent and costly causes of homeowner claims. Some insurers offer credits for monitored shutoff devices. If you already have one of these systems, notify your insurer so your policy reflects it.
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Does an Impact-Resistant Roof Lower Your Insurance Costs?

It may. Reinforced roofing has been shown to reduce storm related damage in areas exposed to severe weather, and some insurers apply a roof credit. Keep receipts, photos, or certificates, since insurers often need documentation. Credits vary by insurer and state.
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A strengthened roof can make a difference during wind and hail events. Reinforced roofing systems have been shown to reduce storm related damage in regions exposed to severe weather. Keep receipts, photos, or certificates. Insurers often need documentation before applying a roof credit.
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Which Fire Safety Upgrades Can Lower Your Home Insurance Risk?

Working smoke alarms and monitored fire or security systems are the most common. In wildfire-exposed areas, Class A roofing and a noncombustible five-foot zone around the home can help. Send your insurer a certificate for any monitored system. Eligibility for credits varies by insurer.
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Working smoke alarms can reduce the risk of severe loss. Homes with functional alarms have a much lower fatal fire rate compared to homes without them. In wildfire exposed areas, upgrades like Class A roofing and a noncombustible five foot zone around the home help reduce ignition risk. If you have a monitored fire or security system, request a certificate and send it to your insurer.
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What Weather Hardening Upgrades Help Protect Against Storms and Floods?

FEMA highlights roof hardening, sump pump backups, and flood vents as high-impact steps for homeowners. These upgrades can help reduce storm and flood damage. If you live in a flood-prone area, check for state or local mitigation programs that may offset upgrade costs.
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Large weather events continue to rise, with the country experiencing tens of billions in annual losses from storms and climate-driven disasters. FEMA highlights several high-impact mitigation steps for homeowners, including roof hardening, sump pump backups, and flood vents, which are outlined in their flood protection guide. If you live in a flood-prone area, check for state or local mitigation programs that may offset upgrade costs.
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Do Home Security Systems Lower Your Insurance Premium?

They may. Security systems can help reduce theft risk, and some insurers offer credits for features like centrally monitored alarms, reinforced doors, and smart security devices. Eligibility varies by insurer, so send your monitoring certificate to your insurer and ask what qualifies for a credit.
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Security systems can help reduce theft risk, and some insurers offer discounts for certain monitored systems. Many insurers offer credits for features like centrally monitored alarms, reinforced doors, and smart security devices. You can see examples of recognized features in this homeowners insurance guidance. If you upgraded your system, send your insurer the monitoring certificate to determine eligibility.
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How Do You Get Credit for Home Upgrades From Your Insurer?

Document every upgrade with receipts, photos, or certificates, then notify your insurer when the work is done. Ask about mitigation credits or home hardening discounts, and review your policy after major upgrades. If your insurer doesn't recognize the improvements, compare other carriers.
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• Document every upgrade with receipts, photos, or certificates
• Notify your insurer when you complete a risk-reducing improvement
• Ask about mitigation credits or home hardening discounts
• Review your policy after major home upgrades
• Compare carriers if your current insurer does not recognize your improvements
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Should You Review Your Insurance After Home Upgrades?

Yes. Review your policy after any risk-reducing upgrade so it reflects the improvement. Update your documentation, ask about credits, and compare how different carriers treat home improvements. Credits and discounts vary by insurer and state and aren't guaranteed, so ask what applies to you.
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Capturing credits, updating documentation, and comparing how different carriers treat home improvements can help you manage long-term costs and maintain the right level of protection for your home.
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Covered is a licensed insurance agency. Not all carriers or products are available through Covered. Availability varies by state. Compensation may be received from carriers.