Safely Reducing Home Insurance Through Great Home Maintenance
For many homeowners who don't expect to have too many home insurance claims, paying a monthly premium to the insurance company is a drag. You'd probably rather invest that money into your own home. It may be possible to do so, by adjusting the levels of risk in your home so that you don't need as much insurance coverage.
Reduce Risks, Reduce Related Coverage
When you improve the quality of your home systems, you may be able to reduce your amounts of coverage on related home insurance plans. Want to reduce your fire coverage? Invest your resources in getting a good fireplace maintenance plan and having an electrician check for fire risks. Want to reduce coverage for flood damage? Better make sure you've got your plumbing in order with up-to-date plumbing fixtures that won't lead to a leak or clog. Reducing the coverage could be a matter of raising deductibles or of canceling certain coverage altogether, but either way, your monthly premiums should go down. And, if you follow that up with good maintenance, you're less likely to see a claim at all.
What Areas Are Most Risky?
What are some of the biggest insurance claims for homeowners? Fires are a biggie, but there are also many claims for flooding and theft. It's a good idea to get a home inspection to see which areas of your home need the most work. If you had your electrical wiring installed many moons ago, it might be that. If your waterproofing is terrible expect to spend some money getting your basement finished and coated with a sealant.
Budgeting for Repairs and Risk Reduction
If you are able to reduce your insurance rates, you could put that money right back into the maintenance on your home. Imagine living in a nicer and better maintained home instead of paying that money to your insurance company! Set up a plan with your home maintenance contractors so that you know what kind of budget you're looking at each year.
Of course, the amount of insurance you want versus the amount of risk you're comfortable with is something that differs for each person. In an ideal world, you would have full home insurance coverage that includes all of your property, plus a great home maintenance schedule so that nothing ever goes wrong. But real home ownership often involves some compromises. But, great home maintenance always pays off.