Proper insulation is one of the most effective ways to improve your home’s comfort and energy efficiency. Without it, you may be losing heat in the winter, cool air in the summer, and money year-round. Here are five common signs that your home may need new or improved insulation.

1. Drafts

If you notice a cool breeze coming through your walls, windows, or doors—even when they’re closed—it’s a clear sign of poor insulation. These air leaks allow outside air to enter your home, making it harder to maintain a consistent temperature.

2. High Energy Bills

When insulation is lacking, your heating and cooling systems have to work overtime. Warm air escapes in the winter and cool air seeps out in the summer, driving up your energy usage and monthly bills. Upgrading your insulation can help reduce strain on your HVAC system and lower costs.

3. Frozen Pipes

Pipes that aren’t properly insulated can freeze during cold weather, potentially bursting and causing serious water damage. Quality insulation helps keep your home—and your plumbing—protected from freezing temperatures.

4. Ice Dams

If you notice ridges of ice forming along the edges of your roof, insulation could be the culprit. Ice dams occur when heat escapes through your attic, melting snow that refreezes near the roofline. Proper insulation and ventilation help prevent this common winter problem.

5. Uneven Temperatures

Do certain rooms in your house always feel hotter or colder than others? Cold walls, floors, or ceilings—and inconsistent room temperatures—are strong indicators of poor insulation. Upgrading can make your entire home more comfortable and consistent.

The Energy Efficient Home Improvement Credit is a federal tax credit designed to help homeowners offset the cost of making energy-saving upgrades to their homes. It was expanded under the Inflation Reduction Act of 2022 and allows you to claim 30% of the cost of qualified improvements made to your primary residence each year—up to a maximum annual credit of $3,200.

For insulation specifically, the credit applies to materials that reduce heat loss or gain, such as fiberglass, cellulose, and spray foam. Labor costs for installation generally don’t qualify for insulation, but the materials themselves do.

The credit resets annually, meaning homeowners can continue to make improvements over multiple years and claim the credit each time. To receive it, you simply claim the expenses on your federal tax return using IRS Form 5695.

By taking advantage of the Energy Efficient Home Improvement Credit, homeowners can significantly reduce the upfront cost of upgrading their insulation and other systems—improving comfort, lowering energy bills, and increasing the long-term value of their homes.