Managing property in Southern California isn’t just about maintaining the home and finding tenants—it’s about protecting your long-term investment. And when you make upgrades to your property, you could be missing out on insurance savings that add up year after year.
At Good Life Property Management, we help rental owners throughout the region stay proactive—not just with maintenance, but with opportunities to cut costs and boost returns. Schedule a call to find out how your recent renovations might qualify for lower insurance premiums.
Key Takeaways
Upgrades like a new roof, electrical rewiring, or home security systems may qualify for insurance discounts.
Some renovations—like adding a pool or home office—can increase your premium or require more coverage.
Always document upgrades and share the paperwork with your insurance provider to qualify for discounts.
Updating your home without updating your policy can leave you underinsured in a worst-case scenario.
Table of Contents
Renovations Can Save You Money—If You Tell Your Insurance Company
Most homeowners don’t think about their insurance policy unless something goes wrong. But what if the upgrades you’ve made to your home could lower your premium?
From installing a new roof to upgrading your electrical system or adding a smart security setup, many common renovations reduce risk—and insurance companies reward that. Unfortunately, most policyholders never report these updates, leaving potential savings on the table.
If you’ve recently completed a renovation—or are planning one—it’s the perfect time to check in with your provider. You might be eligible for significant discounts with just one phone call.
Which Renovations Can Reduce Your Insurance Premium?
Insurance companies assess risk when setting your premium. When you improve the safety, durability, or security of your home, that risk goes down—and so could your bill.
Here are the top home upgrades that may lead to lower insurance costs:
New Roof Installation
A new roof is one of the best ways to cut insurance costs. Replacing old or damaged roofing with fire-resistant, wind-rated materials helps protect your home from water damage, leaks, mold, and fire—all things insurers hate to pay for.
How to get a discount:
- Choose Class A fire-rated materials like metal, clay tile, or asphalt shingles.
- Ask your contractor for official documentation of the replacement.
- Submit the documents to your insurer as proof of the upgrade.
Bonus Tip: In California, wildfire risk is a major factor. Upgrading to fire-resistant materials may make you eligible for even more savings or additional coverage options.
Electrical System Upgrades
Outdated electrical systems are one of the leading causes of home fires. If your home’s wiring is more than 30 years old—or you still have a fuse box—it’s likely considered high risk by your insurer.
Upgrading your electrical panel, rewiring old circuits, or replacing aluminum wiring with copper significantly improves home safety and could earn you a discount.
What to ask your insurer:
- Do you offer a discount for homes with updated electrical systems?
- Do I need to provide a licensed electrician’s certificate of completion?
Installing a Home Security System
Security upgrades help prevent burglary, vandalism, and property damage—all of which result in insurance claims. Some insurers offer 5% to 15% discounts for homes equipped with modern systems.
Look for these features:
- Smart cameras and motion sensors
- Window and door sensors
- Monitored alarm systems
- Smoke, carbon monoxide, and water leak detectors
Not all systems qualify for a discount, so check with your provider for a list of approved brands or monitoring services.
Fire Mitigation Features
In high-risk wildfire zones like many parts of California, insurers are tightening standards. You may qualify for lower rates by adding:
- Fire-resistant siding or vents
- Ember-resistant vents and soffits
- Defensible landscaping (clearing brush 5–30 feet from the home)
You can also check if your home qualifies for the California FAIR Plan or other fire-specific policies based on new mitigation efforts.
Plumbing Updates
Old galvanized or polybutylene pipes are prone to leaks, which cause costly water damage. Upgrading to PEX or copper piping not only prevents problems but may earn a premium reduction.
Be sure to inform your insurer and provide plumber certification if available.
Renovations That Might Increase Your Premium
While many upgrades reduce your risk, others may increase it—or increase the home’s replacement value. That doesn’t mean you should avoid them, but it does mean you should check your coverage limits after the work is done.
Swimming Pools
Pools increase liability, especially if unfenced. Expect to pay more unless you add proper safety features like:
- A locked fence or enclosure
- Safety covers
- Pool alarms
Home Additions
Adding square footage increases your home’s value—and the cost to rebuild it. This often requires an adjustment to your dwelling coverage limit.
Ask your provider for a new replacement cost estimate after major additions.
Home-Based Businesses
If you’re storing inventory or equipment, or seeing clients at your home, you may need additional liability coverage or a rider on your existing policy. Operating a business without proper disclosure could void a future claim.
Questions to Ask Your Insurance Provider After Renovating
Before or after completing a renovation, make it a habit to ask your insurer:
- Will this renovation impact my premium?
- Do I qualify for any new discounts?
- Is my current coverage limit still sufficient?
- Should I update my personal property coverage?
- Can I bundle policies for additional savings?
Documentation is key. Always save receipts, permits, inspection reports, and contractor invoices.
Don’t Renovate and Forget—Update Your Insurance, Too
Upgrading your home is a big investment, but don’t stop at drywall and fixtures. By informing your insurance provider, you can often recoup some of those costs through lower premiums.
Even simple upgrades like a security system or modern plumbing could save you hundreds per year. And more importantly, updating your policy ensures you have the right coverage in case something does go wrong.
Want to Make Sure You’re Not Overpaying for Insurance?
At Good Life Property Management, we help landlords protect their investments from all angles—including hidden costs like outdated insurance policies. From day-to-day management to long-term savings strategies, we help you get the most out of your rental.
Schedule a consultation today to see where you could be saving.
Frequently Asked Questions About Renovations and Insurance
1. Will my insurance premium go down after installing a new roof?
Yes—especially if it’s fire-resistant or wind-rated. Be sure to send proof of the upgrade to your insurer.
2. Can a home security system reduce insurance costs?
Many insurance companies offer 5–15% discounts for smart, monitored systems.
3. Do home renovations always increase insurance premiums?
Not always. Safety-focused upgrades may reduce premiums. But additions that increase the home’s value can lead to higher rates.
4. Should I call my insurer before or after a renovation?
Both. Before the project, ask how it may affect your policy. Afterward, send proof of work to apply for any eligible discounts.
Resources and Useful links:
California Department of Insurance – Homeowners Insurance
Insurance Institute for Business & Home Safety (IBHS) – Wildfire Ready Guide
Steve Welty
Subscribe to Our Orange County Landlord Newsletter
Get in touch with us:
Orange County Property Management Blogs
The Ultimate Formula for Pricing Your Rental
Learn the ultimate formula for pricing your rental property. Maximize profit and minimize vacancies with our Max Rent Pricing strategy—simple, effective, and proven!
Best Huntington Beach Property Management Companies
Looking for the best property management company in Huntington Beach? Compare the top local firms by fees, reviews, and experience.
SB 1051: Key Changes for California Landlords in 2025
Learn about SB 1051 and its impact on California landlords starting January 2025. Understand new obligations regarding lock changes and tenant protections.