Top home security upgrades that can lower your homeowners insurance premiums

Increasing homeowners insurance costs have become a harsh reality across America, with premiums rising an average of 33% since 2020, according to joint research from the University of Pennsylvania’s Wharton School and the University of Wisconsin. While rate hikes appear inevitable, strategic home security upgrades can help offset these costs — though with varying savings.

“The actual savings on premiums can vary greatly depending on the individual, the insurance policy and the insurer’s approach to risk management,” says Joe Clark, president of California-based Liberty Select. “While security upgrades do provide discounts, homeowners should view these investments primarily as protection for their property, with insurance savings as a welcome, but secondary, benefit.”

With that in mind, let’s dive into the top home security improvements, how much they cost and how much they might realistically lead to lower premiums.

🏡 Home security systems

Home security systems are protection networks that connect multiple security devices — such as surveillance cameras, door and window sensors and motion detectors — into a single integrated system. A basic system typically costs between $200 to $600 for equipment, plus optional monitoring fees of $20 to $60 a month. But how much can they shave off your premium?

“Smart home security systems typically yield about 2% to 5% in premium reductions,” says Clark. However, Erika Tortorici, founder of Optimum Insurance Solutions in Massachusetts, notes that discounts can vary more significantly depending on the type of system: “A monitored burglar alarm system that reports directly to police can yield 7% to 15% savings, whereas a standalone smart doorbell or security camera may only offer 2% to 7%.”

Here’s a quick look at the potential annual savings you could achieve, as well as the breakeven point for your investment — or the time in which the system pays for itself in the form of reduced insurance premiums.

Can it save you money?

Monitored systems typically offer higher discounts but may not pay for themselves if monthly fees are too high. Basic systems may cost less up front with no recurring fees, making them more financially attractive despite smaller discounts.

🚪 Reinforced doors

Reinforcing a door involves adding metal hardware to strengthen its most vulnerable points, including the frame, strike plate and hinges. For maximum protection, you can invest in steel doors, which offer superior durability and break-in resistance.

Insurance providers recognize that these simple, yet effective, upgrades dramatically reduce break-in risk, but they may not translate into big savings, “while effective, basic measures like deadbolts and reinforced doors generally save just 1% to 3% on your insurance,” says Clark.

The costs of reinforcing doors can vary widely, depending on how many doors you reinforce, as well as if you do the work yourself or pay a professional to install them. In general, the cost of a single reinforced door is typically between $100 and $400 — although they can run higher.

Can it save you money?

Door security upgrades tend to yield minimal insurance savings, with expensive multidoor reinforcements taking decades to break even. Consider these upgrades primarily for your peace of mind rather than for the financial benefit.

Dig deeper: How to shop for homeowners insurance: A step-by-step guide

💧 Water leak detection systems

Using sensors placed near plumbing fixtures, appliances, and water-using equipment, water leak detection systems monitor your plumbing for leaks, unusual flow patterns or burst pipes — and can automatically shut off your water supply when problems are detected.

Insurance providers value these systems because water damage consistently ranks among the most common and costly claims. According to Clark, “Water leak detection systems typically reduce insurance premiums by 3% to 5%.”

Broadly speaking, water leak detection systems can cost anywhere from $500 to $2,500 depending on how extensive the system is throughout your house and whether you do the work yourself or pay for professional installation.

⚠️ Be aware that damage from gradual leaks or sewer overflows are not covered under homeowners insurance. If you have any questions, call your insurance company or agent.

Can it save you money?

While basic leak detection systems may pay for themselves through insurance discounts within five years, premium systems are primarily investments in preventing costly water damage rather than for insurance savings alone.

🔥 Fire protection upgrades

Advanced fire safety protection goes beyond basic smoke detectors to include comprehensive protection for your home. These upgrades include interconnected smoke and heat sensors that communicate with each other, automatic sprinkler systems that activate during fires and monitored fire alarms that alert emergency services.

These systems can detect fires earlier, alert faster and even begin suppression before firefighters arrive — all factors insurance companies value. “Homeowners can expect to see insurance premium reductions in the range of 2% to 5% from interconnected smoke and heat sensors, and installing an automatic sprinkler system can potentially lead to more significant insurance savings ranging from 5% to 10%,” says Clark.

While interconnected smoke detectors can be a relatively inexpensive upgrade — costing between $100 and $300 — whole house sprinkler systems are not cheap and may cost several thousand dollars, depending on the size of your home.

Can it save you money?

Interconnected smoke detectors may deliver good financial returns through insurance discounts, while extensive whole-house sprinkler systems primarily provide safety benefits rather than financial advantage in the form of premium discounts.

🪟 Impact-resistant windows and doors

Impact-resistant windows and doors feature reinforced frames and laminated glass with a strong polymer layer sandwiched between glass panes. These specialized products are designed to withstand strong winds, flying debris and forced-entry attempts.

Insurance companies value these home upgrades particularly in regions vulnerable to severe weather. “Impact-resistant windows and doors can save homeowners 3% to 7% on premiums, especially in storm-prone regions,” says Clark.

Impact-resistant windows typically cost upward to $1,000 each, while impact-resistant doors can easily cost $1,500 and up per door. Depending on how many windows and doors you update, these improvements can run into the tens of thousands of dollars.

Can it save you money?

The insurance savings alone rarely justify the high cost of impact-resistant features. However, the real value from these upgrades comes from protection against catastrophic damage and maintaining insurability in high-risk areas.

🌩️ Lightning protection systems

Lightning protection systems consist of metal rods installed on your roof, connected to conductor cables that run down to grounding rods buried in the earth. These systems channel lightning strikes safely into the ground, protecting your home’s electrical system, appliances and structure from damage.

While insurance companies offer discounts for these systems, the premium savings aren’t as significant as other upgrades. Yet as Clark points out, “Lightning protection systems might only save 1% to 3% on your insurance, but can prevent catastrophic damage.”

The cost of a lighting protection system can run anywhere from $1,500 to $3,000 through various sources online, factoring in installation costs.

Can it save you money?

Lightning protection systems offer minimal financial return through insurance discounts alone, but the true value lies in preventing catastrophic damage to your home and electronics.

Other upgrades that can save you money

Beyond dedicated security upgrades like those we’ve covered, an array of other home improvements may qualify you for discounts or enhance your property’s safety and energy efficiency, including:

• Motion-activated exterior lighting. These lights deter potential intruders and reduce fall risks around your property. Available for $20 to $100 and up for DIY installation, they may contribute to small security discounts while enhancing your home’s security.

• Security fencing and gates. These include robust fencing and potentially electronic entry systems designed to control property access. Ask if your insurer offers discounts for security fencing, particularly if you live in a neighborhood it considers a high-crime area.

• Energy-efficient appliances and HVAC systems. Buying newer, energy-efficient models can reduce the risk of fires and water damage from malfunctions. While these upgrades may or may not earn you discounts, they can help lower your utility bills.

• Whole-house backup generators. Backup generators provide electricity during power outages and maintain security systems during electrical failures. While costs can run up to $5,000 and higher, they may qualify you for insurance discounts with some insurers.

• Smart smoke and carbon monoxide detectors. These smart detecting devices send alerts to your phone when triggered, even when you’re away from home. At $50 to $150 per detector, they’re an affordable upgrade that may qualify you for small fire protection discounts.

When is an upgrade worth it?

Determining which security upgrades provide the best value requires analyzing your costs versus long-term savings. Here’s how to assess whether a particular improvement makes financial sense.

Calculate your breakeven point

To determine if an upgrade is financially worthwhile, divide its total cost by your annual insurance savings. For example, if installing a $1,200 security system saves you $180 annually on insurance, you’ll reach your breakeven point in about 6.7 years:

For most homeowners, upgrades with breakeven points of under 10 years can make financial sense, especially if you plan to remain in your home for the long term.

Identify the most cost-effective upgrades

Start with improvements that offer the most substantial insurance discounts relative to their cost:

• Basic security systems. Costing $200 to $600 with no monthly fee options, these systems may offer insurance savings of $45 to $112.50 annually and can reach breakeven within 2 to 13 years while significantly improving home security.

• Interconnected smoke detectors. With a relatively low cost of $100 to $300 and potential insurance savings of $45 to $112.50 annually, these devices can be a good investment — not just financially, but safety-wise too.

• Water leak detection systems. Priced at $500 to $2,500, these systems provide insurance savings of $67.50 to $112.50 and can pay for themselves in less than 10 years, offering both financial benefits and important damage prevention.

💡 Expert tip: Don’t let cost be the only factor when selecting an upgrade. Focus on improvements that offer real protection for your and your family, as well as peace of mind.

How to notify your insurer about security upgrades

Once you’ve invested in security improvements, follow these three steps to secure your discounts:

1. Collect your installation receipts and take photographs of security and safety features.

2. Contact your insurance company or agent about your security upgrades.

3. Request a property re-inspection to verify upgrades if needed.

💡 Expert tip: Many insurance discounts for security upgrades are predetermined and non-negotiable. Always check your policy’s specific discount schedule or call your insurance company or agent before expecting significant savings.

Tips for saving money on your home insurance

Beyond security upgrades, several additional strategies can help reduce your homeowners insurance costs. Consider these approaches to maximize your savings:

• Shop around annually. Insurance rates can vary significantly between companies, so call around and compare at least three quotes every year to ensure you’re getting the best rate.

• Try bundling policies. Combining your home and auto insurance with the same company can often lead to multipolicy discounts of 10% to 15% — some of the largest insurance savings available to homeowners.

• Increase your deductible. Raising your deductible from $500 to $1,000 or higher can reduce your premium, though be sure you have adequate emergency savings to cover the higher out-of-pocket cost if you need to file an insurance claim.

• Maintain good credit. In most states, insurers use credit-based insurance scores to determine rates. Paying bills on time and reducing debt can keep premiums lower – so protect your credit score, even in retirement.

• Consider paying annually. Most insurers offer discounts for paying your premium in full rather than monthly installments.

Dig deeper: 6 age-smart ways to save on homeowners insurance (that work for all homeowners)

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FAQs: Protecting your home and saving money

Learn more about how home insurance works with these common questions. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

What is the 80% coverage requirement in homeowners insurance?

The 80% rule in homeowners insurance refers to a common requirement to insure your home for at least 80% of its replacement cost to receive full coverage for partial losses. If your coverage falls below this threshold, your insurance company may pay only a percentage of your claim, even for partial damage.

For example, if your home would cost $500,000 to rebuild completely, you should have at least $400,000 in dwelling coverage to satisfy the 80% rule. If you insure it for only $300,000 (which is 75% of the required $400,000 minimum), and you have a $100,000 partial loss, the insurer will only pay $75,000 of your claim (75% x $100,000). The remaining $25,000 would be your responsibility, in addition to your deductible.

I’m looking to sell my home, but I’m not sure what to fix. What upgrades do I need for a successful sale?

While it’s important to put your best foot forward, it’s equally important to avoid “over-improving” your home. When preparing your home for a sale, it’s easy to get caught up in making everything perfect. However, many common fixes and upgrades simply aren’t worth the investment. And more often than not, the highest-return presale improvements are actually low-cost updates. Learn seven updates to skip — and how to avoid wasting money — in our guide to what not to fix before selling a home.

What is FEMA’s 50% rule in home insurance?

Under FEMA’s guidelines, when flood damage repair costs exceed 50% of a home’s market value, the entire structure must be upgraded to meet current flood protection standards.

Can a financial advisor help with reviewing my insurance coverage?

Yes. A financial advisor can assess your insurance needs within your total financial picture. If you’re thinking about changing your coverage, talking with a trusted financial advisor first can make sure you’re financially protected while avoiding over-insurance.

About our writer

Kat Aoki is a seasoned finance writer who’s written thousands of articles to empower people to better understand technology, fintech, banking, lending and investments. Her expertise has been featured on sites like Lifewire and Finder, with bylines at top technology brands in the U.S. and Australia. Kat strives to help consumers and business owners to make informed decisions and choose the right financial products for their needs.

Article edited by Kelly Suzan Waggoner