The Importance of Maintaining Your Home to Keep Your Insurance Rates Low


Your home is likely one of the most significant investments you will make in your lifetime. Protecting it is essential, and this includes having proper homeowners’ insurance coverage in your homeowner’s policy.

But did you know that regular home maintenance can also help you save on your homeowners insurance policy?

When it is in your hands to reduce costs and you know what it takes to do so, that can prove a valuable combination.

Maintaining your home is one of the best ways to keep your insurance rates low. A lack of maintenance is a sure-fire way to increase costs.

Neglecting upkeep and a lack of maintenance can lead to costly repairs and even bigger insurance claims in the future.

Regular inspections and regular home maintenance will go a long way in reducing potential issues.

Doing things like replacing worn-out roof shingles, sealing windows, checking for leaks, and getting regular HVAC maintenance will help ensure that your home remains in good condition and is less likely to suffer from more serious damage in the future.

In addition to performing regular home maintenance, there are additional steps you can take to reduce your insurance costs.

Installing a burglar alarm or security system can reduce premiums significantly.

 In this blog, we will explore a bit more on how taking proactive measures to maintain your home can pay off in the long run.

Why Does Home Maintenance Matter to Insurance Companies?

Insurance carriers are in the business of risk management. They assume the risk of covering your home in exchange for a premium. To determine the premium amount, they assess the risk associated with insuring your property.

Factors such as the age of the home, its location, and the materials used to build it all contribute to the perceived risk level.

Insurance companies also consider the likelihood of damage to your home.

For example, if your home is located in a flood-prone area, the likelihood of flood damage is higher, and therefore the risk of insuring your property is higher.

If the insurance coverages increase, the premium adjusts up.

By taking proactive measures to maintain your home, you reduce the likelihood of damage occurring.

This, in turn, reduces the risk to the insurance company, and they may reward you with a lower premium.

What types of home maintenance can impact your insurance policy?

Types of Home Maintenance

There are several areas of home maintenance that can impact your insurance policy. Let’s explore a few of them:

  1. Roof maintenance: Your roof is your home’s first line of defense against the elements. Keeping it in good condition can prevent water damage, which is one of the most common home insurance claims. Regular roof inspections and repairs as your roof ages can help prevent leaks and other damage.
  2. Plumbing maintenance: A burst pipe can cause significant damage to your home’s plumbing systems. Regular maintenance, such as cleaning out drains and fixing leaks, can prevent this type of damage from occurring.
  3. Electrical maintenance: Faulty wiring in electrical systems can cause fires, which are not only dangerous but can also result in significant property damage. Regular electrical inspections and repairs can prevent this from happening.
  4. HVAC maintenance: Your heating and cooling system is essential to your home’s comfort. Regular maintenance can prevent breakdowns and prolong the life of your system.
  5. Smoke detector maintenance: Smoke detectors save lives, and they are also required by law in most states. Regularly testing and replacing batteries can ensure that they are functioning correctly.

Effect on Insurance Premium

How can preventative home maintenance impact your insurance premium?

As we mentioned earlier, insurance companies assess the risk associated with insuring your home. By taking proactive measures to maintain your home, you reduce the likelihood of damage occurring. This can lead to a lower risk perception, which can result in a lower insurance premium.

For example, if you live in an area prone to hurricanes, regularly inspecting and maintaining your roof can reduce the risk of wind damage. This can lead to a lower premium because the insurance company perceives a lower risk.

Another way that preventative maintenance can impact your insurance premium is through claims history. Insurance companies track the number and severity of claims made on a property. By reducing the number of claims made, you demonstrate that you are a responsible homeowner and a lower risk to insure.

Finally, some insurance companies offer discounts for certain types of home maintenance. For example, some companies offer discounts for installing a home security system or upgrading to energy-efficient appliances. By taking advantage of these discounts, you can save even more on your insurance premium.

Conclusion

Preventative home maintenance is essential for protecting your home and ensuring its longevity. But it can also have a positive impact on your insurance premium. By reducing the likelihood of damage occurring, you reduce the risk to the insurance company, which can result in a lower premium. Additionally, some insurance companies offer discounts for certain types of home maintenance, which can further reduce your premium.

As a homeowner, it’s essential to take proactive measures to maintain your home. Regular inspections and maintenance of your roof, plumbing, electrical, HVAC, and smoke detectors can all contribute to a safer, healthier home and a lower insurance premium.

It’s also important to keep a record of all maintenance and repairs made to your home. This can demonstrate to the insurance company that you are a responsible homeowner and may help you negotiate a lower premium.

In conclusion, preventative home maintenance is not only important for the health and safety of your home and family, but it can also help you save on your insurance premium.

By taking proactive measures to maintain your home and reduce the risk of damage, you demonstrate to the insurance company that you are a responsible homeowner and a lower risk to insure.

This can lead to a lower insurance premium and more money in your pocket. So, make a plan to prioritize home maintenance today and reap the benefits for years to come.

Here at Watley Insurance Group, saving you money while protecting you and yours has proven a winning formula for many in the Ark-La-Tex area. Any insurance agent worth their salt would want that for their customers.

Working with our independent agents, we can find a homeowners insurance policy solution(s) that fit you best. Contact us to get a review of current insurance and learn how we can help.

Wayne F. Watley, Jr.

Agency Principal, proud husband & father, and jazz enthusiast.