The price Floridians pay for homeowners insurance varies depending on many different factors. Your home’s location, age and market value can all affect your premiums. So can your choice of insurance carrier, the amounts of your deductibles, and whether or not you carry supplemental policies (endorsements). Insurers will also consider your credit score and home insurance score when making a decision.
Many of these factors can make insurance premiums go up. However, you may be able to make your homeowners insurance premiums go down by practicing risk mitigation.
What is risk mitigation?
When your insurance carrier reviews your application for a policy, they don’t just look at your personal history of credit and insurance coverage, and your home’s value. They’ll also be looking at your home’s history, and whether or not there are any pre-existing conditions which could increase the chances of a claim being filed.
Potential risks that can increase your premium:
- Your home is old and hasn’t been well maintained (especially your roof)
- You live in an area more likely to be affected by storms
- You have no security to protect against trespassing and burglary
- You have increased existing risk of fire or water damage
It is often possible to lower or “mitigate” your risks, and in turn potentially lower your annual premium.
Ways to mitigate risk and lower homeowners insurance premiums
You can help mitigate risk against fire, home break-ins, storm damage and more by following these guidelines:
- Fire: Ensure your home is fully equipped with smoke detectors and that at least one working fire extinguisher is present on each floor of your home. Also consider a sprinkler system to help in case of a house fire. If your electrical systems are outdated, you may want to replace them for the safety of your family and your home.
- Storms: Add storm shutters and shatter resistant glass to your windows and doors. A lot of damage from storms comes from wind forcing its way in, and then increasing pressure inside the home. If your roof is old, consider having it replaced, and ask if your roof qualifies for a hip roof credit.
- Security: Homes with an active alarm system and other security features are much less likely to be broken into. Consider setting up a security system and having your home monitored to lower your risk of home invasion and theft.
- Water: Water damage is one of the most common and costly reasons for homeowners insurance claims. Modernizing plumbing and installing leak detectors can help you reduce the chances of a water leak going undetected and causing significant damage to your home.
- Research: If you are buying a home, ask for a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report based on the home address to see if the home is prone to issues that could cause repeated losses. Also find out if the neighborhood you are considering moving into is secured either as a gated or patrolled community, or both.
All of these steps can help you reduce the risk that you’ll have to file a homeowners insurance claim, and can help lower your homeowners insurance premiums. If you have questions about these and other potential ways to improve your home and obtain premium discounts, ask your insurance agent.
This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.