One of the best things about owning a home is the freedom to make changes. It’s like creating a unique piece of art that reflects who you are. These changes are often called home renovations. Surprisingly, around 89% of homeowners have given their homes a little makeover in the past year.

But why do people love making these changes? Well, besides making the house look better, these changes can also increase its value. However, this could affect how much you pay for your home insurance.

Now, let’s see how certain home renovations can raise or lower your insurance costs.

Home Renovations That Increase Your Insurance Cost

When you think about changing your home, you might think about tearing down a wall or building a new room. Maybe you’re dreaming of adding a home office. Unfortunately, these changes could make your insurance cost more. Why? Because these changes could make your home more prone to damage, and insurance companies factor in this risk.

If you’re thinking about upgrading your kitchen or bathroom with luxurious appliances and finishes, be prepared. Yes, they make your house look fabulous, but they could also raise your insurance rate because they’re expensive to replace.

You might also consider adding a deck, patio, or pool. While these are fun to have, they could also lead to more accidents on your property. Again, insurance companies consider this when setting your rate.

Finally, going green can cost you green. Installing solar panels or using other eco-friendly materials could increase your insurance rate. While these home renovations are good for the environment, they might not be so great for your wallet when it comes to insurance.

Renovations That Decrease Your Insurance Cost

Now, not all changes will raise your insurance cost. Some could actually make it lower! Let’s see how.

You might dread the idea of replacing your roof because it can be expensive. However, a new or repaired roof can protect your home from water damage or extreme weather. This reduces the risk of damage, so it could lower your insurance rate.

Adding safety measures like burglar alarms or security cameras could also help. These reduce the chances of someone breaking into your home, which insurance companies love.

Upgrading your plumbing and electrical systems can make your home safer. Impact-resistant windows and reinforced doors can also protect your home from storms. Insurance companies consider these changes as positives because they reduce the risk of damage.

Preparing for disasters could also make your home less risky, which insurance companies like. Depending on where you live, you might consider using fire-resistant materials or reinforcing your roof, windows, and doors.

Smart home technology can also lower your insurance cost. Things like smart locks or water leak detection systems can help prevent accidents, making your home safer and cheaper to insure.

Tips on Finding Affordable Home Insurance

Even after all these changes, your home insurance cost might still be too high. It could be worth it to compare home insurance quotes between different companies. You can use online tools to help you with this.

Bundling your home insurance with other insurance policies, like car insurance, could also help. Other ways to get discounts include having a good credit score, a clean claim history, or even living near a fire hydrant. If you’re a first-time homeowner or if you’re renovating an older home, you might also be eligible for a discount.


In conclusion, home renovations are not just about giving your house a facelift or making it more comfortable. They have a far-reaching impact on various aspects of homeownership, including your insurance rates.

It’s like a game of balance; while some renovations such as adding a home office or installing luxurious appliances and finishes can increase the value and appeal of your house, they could potentially increase your insurance rates due to the heightened cost of replacement or repair. On the other hand, some renovations, like installing solar panels, might seem costly at first, but could potentially pay off in the long run due to energy savings and a reduced carbon footprint.

However, it’s not all doom and gloom. Some home renovations can actually help you save money on insurance. Impact-resistant windows, upgraded plumbing, and electrical systems, or even just the addition of a state-of-the-art security system can make your home safer. These upgrades can potentially lower your insurance premiums by reducing the likelihood of property damage or burglary.

Remember, it’s always beneficial to do your homework and understand the potential financial implications before undertaking any significant home renovations. You could consider getting advice from real estate or insurance professionals to better understand the potential costs and benefits. It’s also worth taking the time to compare home insurance quotes, looking for discounts, and exploring the potential benefits of bundling different insurance policies.

Making smart decisions about your home renovations can not only make your living space more comfortable and personalized but also potentially save you money in the long run. Homeownership is a journey, and being informed and proactive about renovations can make that journey smoother and more rewarding. After all, your home is likely one of your most significant investments, and it deserves thoughtful care and attention.