The rate charged for insurance premiums on a homeowner’s policy is dependent on various factors, including the amount of regular maintenance the insured home has apparently received. The simple fact of the matter is that the more an insurance provider sees a policyholder caring for their home with regular acts of maintenance, the more assured they are that their level of risk is minimized. Minimal risk is their goal.
Regularly taking care of routine home maintenance items can play a role in determining the cost of your homeowner’s insurance coverage. Homeowner’s insurance is not designed to cover normal wear and tear in a home and certain items, if not handled in a timely fashion, could end up causing big problems. A leaky pipe is a good example.
If you have a leaky plumbing part or pipe that needs repair and it’s put off until finally something ruptures and a great deal of water damage is suffered this could be ruled as an uncovered claim by some insurance adjusters. Often, homeowners will raise the amount of their deductible in order to save money on their homeowner’s insurance premiums. In some cases, the amount of money required to fix a leaky pipe will be less than the policy’s deductible amount paid toward a claim for water damage suffered as a result of the water damage caused by said leaky pipe left unattended.
In addition to the deductible amount required in the example cited above, it should also be noted that making claims against your homeowner’s policy is also likely to cause future insurance premiums to be higher. Many insurance companies are willing to give a discount to long-term customers who have never made a claim against their policies.
Another area that is somewhat related to regular maintenance on a home and that can significantly reduce insurance premiums is the installation and regular maintenance of various alarm systems. Although it may seem obvious, some people don’t realize how much less risky it is for an insurance company to insure a house that has working alarms installed. This includes fire alarms, heat alarms, burglar alarms, carbon monoxide alarms and even flood alarms.
The big advantage of having working alarms, in the eyes of the insurance provider, is the factor of early warning. If a fire occurs in the insured house, for example, and a monitoring company is able to receive a signal and immediately dispatch the proper emergency response team, the situation may be handled with a minimum of property loss. For this reason, an insurance company is likely to give a discount in insurance premiums to a home with such early warning security measures.