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Reducing Homeowners Risk
by: Sahil | last updated: November 27, 2009
Category: Homeowners Insurance | Tags: Reducing Homeowners Risk, risk, damage control, saving on insurance, preventing disasters, disasters, floods, catastrophe
Category: Homeowners Insurance | Tags: Reducing Homeowners Risk, risk, damage control, saving on insurance, preventing disasters, disasters, floods, catastrophe
Insurance is designed for undesirable circumstances and paying a small price for protection against such big losses is sensible. However in the event of a catastrophe, a person may not be covered fully and moreover has to pay the deductible if applicable. Therefore it is in the best interests of a home owner to make sure that the house is equipped to handle disasters in an efficient manner.
Giving damage control and precautionary measures the first priority will yield favorable results. Many insurance companies may lower their premiums if a person has installed safety equipment in the house. This can be extended to the land surrounding it; a safety net for falling rocks on the boundary of the house is an example of outdoor safety measures where the house is located near a hill or a mountain.
Some of the most commonly used safety measures are Closed Circuit Television (CCTV), burglar alarms, fire safety equipments, and other means by which the home can be kept protected. Smoke detectors also go a long way in ensuring that nothing catches fire and moreover they are not very expensive. Other traditional safety methods such as deadbolt locks and shutters on the windows will also help in keeping the house safe from theft, vandalism or strong winds.
The location of the home also plays an important role in determining the cost of insurance; premiums can vary from one place to another. The perfect example of this is Florida where insurance companies have slowly pulled out because of huge losses due to frequent hurricanes. If you have the liberty to choose where your house is going to be located then a safe site will ensure lesser hassles and lower premiums.
Other important factors that play a vital role in the safety of a home are the maintenance and plumbing of the equipment that is part of the house. Electrical switchboards, heating pipes, heaters, and air conditioners should be well maintained. If you have rented the property and have not acted on a complaint from the tenant about any of the inherent equipment then you may be liable to pay for the cost of repairing and replacing the same.
Seasonal maintenance is also necessary in order to ensure nothing breaks down in the house. Summers can cause fatigue failure of air conditioners and winters may cause the pipes to freeze or burst. Ensuring that you check all the equipment before and after every season is vital in order to prevent accidents and expenses. It will also help if you have equipment that uses renewable sources of energy and is energy efficient since these are tested by government agencies before they hit the market. Therefore such eco-friendly equipment is less accident prone and long lasting at the same time.
All these factors and many others are taken into consideration by insurance companies who employ the sharp minds of actuaries for risk assessment. Actuaries are professionals who are experts in fields such as statistics, probability, general mathematics, and finance. These people accurately derive the amount of risk that a policy poses and help the insurance companies to calculate the premiums and other terms and conditions. Therefore it is vital not to overlook any aspects of the safety of your home before you venture out to buy home insurance.
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