When you think of energy-efficient home upgrades, the first benefit that comes to mind is typically lower utility bills. But did you know those same upgrades can potentially help you save on your home insurance, too? Insurance companies increasingly view energy-efficient homes as lower-risk properties worth rewarding with better rates.
Improvements that may qualify
Energy-efficient improvements can make your home safer and more resistant to damage from common hazards like fire, water leaks or extreme weather. Understanding which upgrades might earn you a discount can help you make smarter choices that benefit both your wallet and your home.
- Impact-resistant roofing: This type of roofing reflects more sunlight, decreasing cooling costs in summer while providing superior protection during severe weather. Its durability helps it withstand hail, high winds and flying debris that would damage conventional roofs.
- Smart home devices: Smart thermostats optimize heating and cooling cycles, lowering energy consumption and preventing system strain. Water leak detectors can identify plumbing issues before they cause catastrophic damage, while smart smoke and carbon monoxide detectors provide faster alerts during emergencies.
- Modern HVAC systems: High-efficiency HVAC systems reduce the risk of breakdowns, electrical fires and even water leaks from condensation. Smart-enabled systems also monitor performance and alert you to issues early.
- Quality insulation and energy-efficient windows: These features maintain consistent indoor temperatures, reducing structural stress from extreme weather fluctuations. In colder regions, energy-efficient windows can protect against frozen pipes — one of the most common and costly insurance claims in winter.
- Updated electrical system: Outdated wiring is a common cause of house fires and often struggles to efficiently support today’s appliance loads. Replacing outdated panels and wiring lowers your risk profile, especially when combined with surge protection or LED lighting. Many insurers recognize this as a proactive step that minimizes the likelihood of electrical-related claims.
Need more ideas? Check out Ways to Save for energy-saving tips, rebates and programs.
Before you get started
Prior to revamping your home, it’s a good idea to talk to your insurance provider. Not all companies offer discounts for energy-efficient features, and requirements can vary. Keep detailed records of any improvements you make, and consider getting a home energy audit to verify and document your home’s upgrades. Make it a habit to check in with your insurer regularly, especially after any big changes. And don’t be afraid to shop around — another provider could offer better discounts.
With the right improvements and a little research, you might find yourself saving in more ways than one.