Reduce homeowners insurance costs while protecting your investment

| by Mike Gersmeyer
Reduce homeowners insurance costs while protecting your investment

With September’s National Preparedness Month, sponsored by the Federal Emergency Management Agency, now half way through, there’s been plenty of discussion about how residents can help ensure their homes—and families—are prepared for the unexpected.

But, what oftentimes gets overlooked are the benefits that can come with investing in certain home preparedness measures.

According to the Insurance Information Institute, making your home more storm-resistant and purchasing a home security device are two of the best ways you can reduce your homeowners insurance rate.

To reduce the amount of insurance claims that homeowners make after a storm, many insurance carriers offer a “loss mitigation credit,” or something similar. This loss mitigation credit reduces a homeowner’s insurance rate for investing proactively to avert losses, and subsequent insurance claims.

For example, installing a home standby generator is one way to keep a property safe in the aftermath of severe weather, while potentially reducing a homeowner’s insurance rate. Automatic standby generator systems keep the power on when a home’s primary power source goes out, which is a common occurance in bad weather. This allows homeowners to run appliances like air conditioners, heaters, sump pumps, refrigerators, security systems, clothes washers/dryers and lights, thus helping ensure their home remains safe and comfortable for the family.

Standby generators are typically viewed by the insurance industry as a theft-prevention mechanism. Insurance carriers may award policy premium discounts to homeowners whose property is equipped with a standby generator because it keeps the home inhabited—deterring theft—when the power goes out. Obviously, any potential discounts should be discussed with an insurance agent or insurance company prior to purchasing a backup power solution like a home standby generator.

Other ways to reduce your insurance rate can include:

  • Retrofitting a roof to allow it to withstand high winds
  • Installing a home-security device to discourage thefts
  • Adding storm shutters
  • Modernizing your home’s heating, plumbing and electrical systems

To learn more about how standby generators can protect your home and family during a storm or power outage, visit

Topics: Heating & Cooling, Remodeling

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