Home insurance costs have skyrocketed over the last couple of years. Case in point? Data from the Consumer Federation of America shows homeowners have seen their home insurance premiums jump over the last three years as insurers adjusted to inflation and experienced an increase in weather-related claims. 

As a result, many homeowners are looking for ways to cut their insurance expenses without sacrificing essential coverage. And, while there are a few ways to try and do that, making smart renovations may be the answer. 

After all, certain home improvements could slash your homeowners insurance premiums by reducing the risks that drive up coverage costs. Though not every home upgrade will improve your rates, insurance experts say the right projects could put money back in your pocket each year.

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Home renovations that can cut insurance costs

"Generally, insurers give [discounts] for renovations that reduce either the chance of an insurance loss or the size of it, or both," says Peter Piotrowski, chief claims officer at Hippo Insurance.

Discount amounts vary by home insurance provider. But these four home remodeling projects consistently catch insurers' attention, experts say:

Getting a new roof

"A full roof replacement is a project that most insurers love to see," says Nick Christensen, an insurance agent at Goosehead Insurance. 

Your roof is your home's first defense against weather damage, and insurers factor its age into premium calculations. If your roof is 15 to 20 years old (or older), replacing it could lead to noticeable savings on insurance costs.

According to Katie Irey, senior vice president at Allstate, the roof materials you choose matter. 

For example, "insurers may offer discounts for impact-resistant materials [such as] Class 4 shingles," Irey says. "[These] can better withstand hail and high winds." In some states, insurers are required to offer discounts for wind-mitigation features.

To get your discount, "let your insurer know about the upgrade and provide documentation so they can adjust your policy," Irey says. Your insurance company will calculate savings based on your roof's age, materials and resistance ratings.

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Upgrading electrical and plumbing systems

"Water damage and electrical fires are major claim drivers," says Irey. That's why upgrading old wiring or plumbing can earn you meaningful discounts on your home insurance policy. Replacing aging systems before they fail shows insurers you're preventing the expensive claims they worry about most.

"A modern system reduces the likelihood of filing a claim related to either hazard," Christensen says. 

Beyond replacing core systems, consider adding protective features, such as leak detectors and sump pumps. These can reduce water damage risks and boost your savings.

Don't expect automatic recognition for your upgrades, though. 

"A major utility upgrade may require [you to submit] photos or [do an] in-home inspection to qualify for a discount," Piotrowski says. So, be prepared to document your upgrades with permits, contractor receipts and before-and-after pictures.

Adding monitored alarm and security systems

"A monitored security system is a reliable way to lower your home insurance premium," says Christensen. 

These systems reduce the risk of major losses by deterring theft and enabling faster emergency response to fires. When sensors detect trouble, operators can dispatch emergency services immediately. This often prevents small incidents from becoming expensive claims.

Piotrowski emphasizes that smart technology makes these systems even more effective at reducing claims. Modern alarm systems send instant alerts to your phone when hazards arise. This means you can respond quickly and mitigate damage before it becomes a costly insurance claim.

Installing storm shutters

If you live in a hurricane-prone area, "installing permanent storm shutters or impact-resistant windows can lead to insurance discounts," Christensen says. 

These barriers shield your home from wind damage and flying debris during storms. From an insurer's perspective, homes with storm shutters are far less likely to suffer severe damage that triggers expensive claims.

Like other renovations, securing your discount requires official documentation. Insurers usually apply discounts after a wind mitigation inspection, which documents your protective features. This inspection creates the paper trail that insurers need to justify reduced premiums.

Home improvements that typically won't cut insurance costs

Not all valuable home renovations translate to insurance savings, though, experts say. 

"Cosmetic upgrades [won't] lower your home insurance premium," says Christensen. "They may even raise it, as the cost to replace your home has now increased."

The following projects likely won't cut your insurance costs, according to Irey:

• Swimming pools increase liability risk, often requiring more coverage.
• Kitchen and bathroom remodels raise replacement costs due to high-end materials.
• Solar panels add to replacement costs and create new storm damage risks.
• Architectural changes (e.g., garage conversions, open floor plans, exposed brick) can elevate fire, wind or liability risks.

Only renovations that reduce risk may be eligible for lower premiums.

The bottom line

Smart renovations can deliver real insurance savings, but success depends on proper planning. "If you're [renovating to save] on insurance, have a conversation with your insurance agent before you start swinging a hammer," Christensen advises. They can let you know which upgrades will have the most impact on your premium based on your location and risk profile.