Risk Mitigation Tips for Homeowners

Owning a home is the biggest investment for many people. That’s why it’s only common to protect your investment against damage and extreme weather. Natural disasters, theft, and fire can cause property damage and financial loss. To address these risks, many homeowners buy insurance policies that would safeguard their most valuable asset. However, simply having home insurance is not enough. 

Homeowners with existing policies must comply with the duty to mitigate damages. Risk mitigation involves taking steps to lessen the impact of disasters and losses. In this article, we will explore effective risk mitigation tips and techniques for homeowners:

How Mitigation Works in Home Insurance

Risk mitigation is crucial in homeowners insurance as it reduces the chances of paying deductibles out-of-pocket. It helps minimize risks of property damage and injuries to people. 

If you have a homeowners insurance policy, your insurance provider may incentivize you to adopt mitigation measures. They may offer lower premiums or credits when you mitigate risks. Here are the most common risk mitigation measures:

• Installing comprehensive security systems.
• Securing your outdoor areas.
• Keeping walkways clear and dry.
• Having a fire extinguisher.
• Setting up smoke detectors, fire alarms, and carbon monoxide detectors.
• Regularly inspecting plumbing systems and pipes.

Common Home Issues and How To Mitigate Them

Leaks in Your Home

Water damage is one of the most common types of homeowners insurance claims. If water pipes suddenly broke due to pressure, your policy will likely cover any damages. Turn off the main water supply immediately and call your local plumber. The professionals can look for the location of the burst pipes and leaks. 

Cold weather is the main reason why pipes freeze and burst. You can prevent leaks from happening by insulating pipes and sealing cracks where cold air may enter. 

Kitchen Fires

Cooking is identified as the leading cause of home fires, injuries, and casualties. From unattended cooking to explosions ignited by gas leaks, kitchen fires are very common. Standard home insurance covers kitchen fires, as long as it’s accidental.

To prevent kitchen fires, always observe proper fire safety and maintain a safe cooking environment. It’s also necessary to install smoke alarms and place fire extinguishers in an easily accessible area. Through these risk mitigation measures, you can reduce the likelihood of kitchen fires.

Electrical Fires

Home fires caused by faulty electrical wiring and short circuits are typically covered by homeowners insurance. Your provider will likely reimburse your home’s current market value, minus the depreciation value. If your home insurance policy has additional living expenses (ALE) coverage, your hotel expenses will be reimbursed. Keep in mind that your claim will be denied if you purposely set fire to your home.

Follow these tips to prevent electrical-related fires:

• Annual electrical inspections should be done by a professional.
• Never overload electrical outlets.
• Connect electronic devices to surge protectors and power strips.
• Replace damaged electrical cords.
• Keep all electrical devices and outlets away from water.

Candles

Did you know that candle mishaps are covered by home insurance policies? If you accidentally knock a candle off the table, fire and smoke damage will be covered. That’s because candle fires are accidental but could have been prevented. 

The risk mitigation technique for candle fires is simple—do not leave a candle burning for a long time. Keep lit candles away from children, pets, and any flammable objects. Before leaving the house or going to bed, make sure the candles are put out.

Theft

Being robbed of valuables from your home can cause financial hardships and inevitable stress. Fortunately, loss due to theft incidents and break-ins is typically included in home insurance. If an intruder breaks in and steals jewelry or electronics, your home insurance will cover it. The amount of coverage will depend on your specific policy limits and deductibles. You may consult your insurance agent if you need to review the terms of your policy. 

Here are some theft prevention tips, so you don’t end up with a significant loss:

• Invest in a home security system.
• Install a burglar alarm to alert you if someone breaks in.
• Lock all doors and windows before you leave the house.

Key Takeaway

When it comes to home insurance, Local Retirement Group is a local agency you can count on. Our team will help you find the best coverage that protects your home and belongings from any form of loss. Call us today for an appointment!