The Benjamin Franklin proverb “an ounce of prevention is worth a pound of cure” is as true today as it was when Franklin made the statement. This truism can be applied to many facets of life, including insurance! How, you might ask? Prevention and insurance go hand in hand. Because insurance is the transfer of risk from one entity to another, preventing losses is beneficial for both parties involved.
Besides the obvious benefits such as protecting your home and loved ones, did you know preventative measures are a great way to earn discounts on your homeowners insurance? Since the insurance company is the one assuming the risk, it makes perfect sense for them to provide discounts to those consumers who try to prevent losses by installing protective devices.
Below are some types of protective devices as well as loss prevention tips to help you protect your most valuable assets, and also save money on your home insurance:
Install working smoke alarms. It’s an inexpensive way to protect you and your family. A working smoke alarm doubles your chances of survival in a fire. Test it monthly, keep it free of dust, and replace the batteries at least once a year. Smoke alarms should be replaced after ten years of service.
Install a basic burglar alarm, which is typically wired to a central control panel in the home that will activate when windows or doors are opened while the system is armed. According to Alarm System Report, over two million home burglaries are reported in the United States each year and, on average, a burglary of a home in the U.S. occurs every 13 seconds. Statistics paint an interesting picture as to how home security systems and alarm monitoring can affect crime rates and home burglaries. For example, the FBI’s statistics on burglary rates of homes show that 1 in 3 homes without a security system will fall victim to a burglary as compared to 1 in 250 homes that do have a security system.
For even more protection, install a central station fire and burglar alarm system. A centrally monitored alarm system refers to a company that provides services to monitor burglar, fire, and residential alarm systems. Central stations use special telephone lines, computers, software, and trained staff to monitor their customers’ security systems and call the appropriate authorities in the event an alarm signal is received.
Although historically only used in large commercial buildings, sprinkler systems for homes and small buildings are now available at cost-effective prices. If your home happens to have a full or even partial sprinkler system installed, be sure to let your insurance agent know. You’ll receive a discount!
Many systems in your home run off of electricity and when you lose power, these systems stop working, including your sump pump. There are several water back-up loss prevention devices that can help stop water from backing up into your home when you’ve lost power.
- A whole house permanent generator automatically turns on when the power goes out, provides power to the entire house, and is permanently installed. Not only could this type of generator prevent a water back-up situation, but could also power other valuable systems and pieces of property in your home to prevent loss such as your refrigerator and freezer.
- Essential circuit standby generator automatically turns on when the power goes out; however, it only provides power to a selected portion of the home during a power outage. To be used for preventing water back up, the generator must be connected to the sump pump.
- Non-electric back-up sump pump is a water pressure back up sump pump. It relies on the water pressure provided by a municipal water system.
- Water/leak sensor systems have moisture detectors under appliances such as water heaters, clothes washers, dish washers, water softeners, and sinks, and in areas such as basements and crawl spaces. These systems provide an audible signal to the resident of the home. That signal is also sent to a central clearinghouse, a plumber, or water cut-off valve outside the home.
It’s great if you currently have one of these loss prevention devices in your home. Check with your insurance agent to make sure you are receiving all the discounts you possibly can on your homeowners insurance.
If you don’t currently have any of these loss prevention devices installed, remember “an ounce of prevention is worth a pound of cure.” The best intentions do not prevent losses. Even just installing something as simple and inexpensive as a smoke alarm can save lives, your home, your belongings, and your money.
Information obtained from http://www.safewise.com/
Nice article, Pam!
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Hi Pam, I agree with all the points you mentioned in this article. Nowadays, there are lots of things that we can do to get discounts from our homeowners insurance. Of course, we should inquire about these discounts first from our agents. Different providers, different policies. 🙂