The one upgrade insurers actually like right now (and it’s not a remodel)
Insurers are raising premiums, tightening underwriting, and in some regions walking away from risky properties altogether, but they still reward one type of upgrade: anything that cuts the odds of a claim. Instead of pouring money into a new kitchen or a bigger deck, you are more likely to win your carrier’s attention by investing in technology and hardware that prevent fires, leaks, break‑ins, and storm damage. The one improvement insurers consistently like right now is not a remodel at all, it is a safety upgrade that measurably reduces risk.
If you are trying to keep coverage affordable without sacrificing protection, that shift matters. You are no longer just decorating for yourself, you are negotiating with a company that prices every decision in terms of probability and loss. When you understand how that math works, you can choose upgrades that both protect your home and give you a shot at lower premiums.
Why insurers are suddenly picky about your upgrades
From the insurer’s perspective, every change you make to your property either raises or lowers the chance that they will have to cut a large check. A kitchen remodel with marble counters might increase the cost to rebuild, while a new attached garage can add square footage and introduce fresh liability if you start storing tools, fuel, or a home gym there. One guide for policyholders notes that when you renovate, you are typically increasing the value of your home and sometimes adding exposures, such as when a finished basement or expanded garage introduces potential liability concerns, which is why you are expected to notify your carrier about major work so they can reassess coverage and price.
That same guidance stresses that home upgrades change more than appearance, they alter your home’s insurability and the insurer’s risk profile. When you add living space, high‑end finishes, or new structures, you are asking the company to take on a larger potential loss, which often leads to higher premiums rather than discounts. That is why carriers are increasingly drawing a line between cosmetic or value‑boosting projects, which they treat cautiously, and risk‑reducing upgrades, which they are far more willing to reward.
Why a remodel rarely earns you a discount
It is tempting to assume that any improvement makes your home “better” and therefore safer, but insurers do not see it that way. A luxury bathroom, a chef’s kitchen, or a new sunroom might make your property more enjoyable and more valuable on the open market, yet from a claims standpoint they simply raise the cost of repair or replacement if something goes wrong. When you add square footage or expensive materials, you are effectively increasing the size of the check your carrier might have to write after a fire, burst pipe, or storm, which is why remodels often trigger higher dwelling limits and, with them, higher premiums.
On top of that, some renovations introduce new hazards that carriers have to price in. Turning a garage into a home office can change how you use electrical circuits, adding a backyard studio can create additional liability if visitors are injured, and installing complex built‑ins or custom features can make repairs more complicated. The same advisory that urges you to report renovations explains that when you renovate, you are typically increasing the value of your home and that a new or expanded garage introduces potential liability concerns, so your insurer may adjust both coverage and cost rather than offering a discount for the work.
The upgrade insurers actually want: risk‑cutting tech
What insurers do like is any upgrade that makes a claim less likely in the first place. Instead of focusing on granite and glass, they are quietly steering customers toward devices that detect smoke faster, shut off water before a leak becomes a flood, or alert you and the authorities if someone tries to break in. These tools do not just protect your belongings, they protect the insurer’s balance sheet, which is why they are increasingly treated as a win‑win investment.
One overview of smart protection explains that insurers see full home security systems, smart smoke alarms, and connected water sensors as meaningful risk reducers, and that some carriers respond with premium reductions in the range of 2 percent to 5 percent for customers who install qualifying equipment. The same analysis notes that companies like Here and Full are leaning into this model, recognizing that when technology cuts the frequency and severity of claims, it is rational to share part of the savings with the homeowner through targeted insurance discounts for smart tech.
How smart home devices translate into real savings
Smart home devices are not just gadgets, they are data‑rich tools that help insurers quantify and reduce risk. A monitored alarm system can shorten police response times, a smart smoke detector can send an alert to your phone before a fire spreads, and a leak sensor under your washing machine can catch a slow drip before it ruins the floor. When these devices are connected and monitored, they turn your home into a kind of early‑warning system that benefits both you and your carrier.
Reporting on this trend notes that some insurers go further than simple discounts, covering the cost of smart devices or offering discounted hardware to help prevent issues before they become claims, and that combining devices such as security systems, leak sensors, and thermostats can boost savings by reducing multiple categories of risk at once. The same analysis explains that when you layer these tools together, you are not just adding convenience, you are directly lowering your insurance costs by reducing risks, which is why smart home devices can earn insurance discounts that compound as your system becomes more comprehensive.
Water, fire, and theft: the risk categories tech can tame
Insurers pay close attention to the types of losses that drive the biggest checks, and three categories dominate: water damage, fire, and theft. A single burst pipe can destroy floors, walls, and furniture in hours, while a kitchen fire or electrical fault can render a home uninhabitable. Burglaries and vandalism may be less catastrophic, but they are frequent enough to add up. When you install technology that directly targets these threats, you are speaking the insurer’s language.
In California, for example, homeowners are being urged to install a water shutoff valve as carriers increasingly focus on mitigating water damage risks, and some providers are starting to require or strongly encourage these devices as part of broader efforts to keep properties insurable in an increasingly unpredictable world. Guidance on navigating that market explains that when you install a smart shutoff that can detect unusual flow and cut the supply, you are not just protecting your own floors and walls, you are aligning with insurers that want to see concrete steps to reduce water losses, which is why an install of a water shutoff valve is now a recommended move in high‑risk regions.
How much you can actually save with safety upgrades
While no insurer will let you gadget your way to a free policy, the savings from safety‑focused upgrades can be meaningful. Analyses of smart home discounts report that the actual savings from smart home technology usually fall between 5 percent and 20 percent of your premium, depending on the devices installed and the company’s policies. That range reflects how carriers weigh different risks: a monitored security system might earn one level of credit, while a full suite of leak sensors, smoke detectors, and shutoff valves can push you toward the higher end.
Separate reporting on the broader benefits of smart home technology notes that insurance companies are increasingly offering discounts to homeowners who install devices that help monitor and prevent damage, and that the exact percentage depends on what you install and how your insurer structures its incentives. The key is that these companies are not rewarding aesthetics, they are rewarding prevention, which is why they are willing to tie tangible premium reductions to smart home tech that unlocks discounts and to a growing list of connected devices that give them confidence your home is less likely to generate a costly claim.
Disaster‑hardening: when structural upgrades do pay off
Not every physical project is a strike against you. When you invest in hardening your home against disasters, you are still remodeling in a sense, but you are doing it in a way that directly reduces risk. Reinforcing your roof, upgrading windows to impact‑resistant glass, clearing defensible space around your property, or adding fire‑resistant materials can all change how your home performs in a wildfire, hurricane, or severe storm. Those are the kinds of upgrades insurers are increasingly willing to reward, especially in high‑risk states.
One example is California’s insurance discount program known as Safer from Wildfires, which ties specific mitigation steps to premium credits. Reporting on how homeowners are saving on insurance by upgrading their houses against disasters explains that these discounts can be modest on paper, sometimes in the range of a 0.5 percent or 1 percent discount for individual measures, but they can stack as you complete more of the recommended checklist. The same coverage notes that how insurance discounts could drive more disaster prep is becoming a central policy question, since even small credits can nudge homeowners to invest in upgrades that dramatically reduce the chance of catastrophic loss.
What actually lowers your premium when money is tight
With inflation, higher construction costs, and climate‑driven losses all feeding into premium hikes, many homeowners are looking for ways to cut their bills without cutting coverage. Some are delaying maintenance or skipping recommended repairs, hoping to ride out a tough economy, but that strategy can backfire if a neglected roof or aging plumbing leads to a major claim or even a nonrenewal. Insurers are watching for signs that a property is deteriorating, and they are not shy about pricing that risk into your policy.
Consumer guidance on coping with rising costs points out that some home improvement projects can actually lower your insurance premiums, especially those that reduce the likelihood or severity of a claim, and that tips to lower home insurance often focus on targeted safety upgrades rather than cosmetic work. That advice highlights that when you choose projects like reinforcing your roof, adding storm shutters, or installing monitored alarms, you are more likely to see your insurer respond with credits, because these are the kinds of tips that can bring down your premiums without sacrificing the protection you need if something goes wrong.
What car insurance can teach you about home coverage
If you are still unsure why your insurer is so enthusiastic about safety tech but lukewarm about your new bathroom, it helps to look at auto coverage. In the car world, the pattern is obvious: some upgrades can actually work in your favor by reducing risk, and safety upgrades are highly valued by insurers. When you install advanced braking systems, collision‑avoidance sensors, or better airbags, you are not just making your vehicle nicer to drive, you are making it less likely to be involved in a serious accident.
Guidance on custom‑built car insurance spells this out clearly, noting that some upgrades can actually work in your favor by reducing risk and that safety upgrades are highly valued by insurers, because installing features that prevent or lessen crashes signals a commitment to safety and can potentially lead to discounts. The same logic applies to your house: when you invest in technology and construction choices that prevent fires, leaks, break‑ins, or storm damage, you are sending the same signal to your home insurer, which is why some safety upgrades are highly valued across both auto and property policies.
How to prioritize your next upgrade for maximum impact
When you are deciding where to spend your next dollar, it helps to think like an underwriter. Start by listing the biggest risks your property faces, whether that is water damage from aging pipes, wildfire exposure at the edge of a forest, or frequent break‑ins in your neighborhood. Then match each risk to a concrete mitigation step, such as a smart water shutoff, ember‑resistant vents, or a monitored alarm system. Before you buy anything, call your insurer or agent and ask which upgrades qualify for credits and how to document them.
As you weigh your options, remember that insurers are increasingly explicit about the kinds of technology they want to see. Analyses of smart home incentives emphasize that insurance companies are increasingly offering discounts to homeowners who install devices that help monitor and prevent damage, and that the exact savings depend on the devices installed and the company’s policies. That means your best move is to prioritize upgrades that both make you safer and align with those incentives, using the growing menu of benefits of smart home technology as a guide while you plan your next project.
