Most homeowners protect their homes against fire even though their property is much more likely to be damaged by a busted pipe, a recent survey said. (iStock)
Most homeowners dismiss the risk of non-weather-related water damage, although it’s the second most prevalent cause of insurance loss claims, a recent survey said.
Only 17% of homeowners said non-weather-water damage was their biggest home-related concern, despite a plumbing leak being seven times more likely to cause damage than a fire, according to the Hanover Insurance Group survey.
Protecting a property from water damage means homeowners are less likely to need to file a claim, which may result in lower insurance premiums, according to Ray Shultz, the vice president of e-commerce at Liquid Rubber. Yet most of the homeowners surveyed by Hanover were unaware of solutions to minimize water-related damages. Sixty-eight percent were unfamiliar with water sensors and 61% had never heard of an automatic water shutoff device – two effective methods for reducing water damage.
“Water is invasive, and there are some things even the very best coverage can’t replace,” The Hanover President of Personal Lines Dan Halsey said. “The best protection is risk prevention, and it’s more critical than ever. Our Home Water Damage Prevention Report indicates homeowners are in need of education regarding the technology available to reduce the risk of water damage, which creates an opportunity for independent insurance agents to better service their customers.”
If you have a mortgage, you’re typically required to carry homeowners insurance, but you don’t have to stick with any particular insurance company. If you want to save on your home insurance costs, you could shop around for the best rate. Credible can help you compare home insurance rates from top insurance carriers all in one place.
FEAR OVER SOCIAL SECURITY’S FUTURE PUSHES AMERICANS TO CLAIM BENEFITS EARLY: SURVEY
Climate-related disasters are pushing the costs of home insurance to rate homeowners are finding hard to afford and also risks devaluing properties, a recent analysis from the First Street Foundation said.
Some 6.8 million properties have already been impacted by increasing insurance rates, canceled policies, and the realization of property value devaluation due to the increased cost of ownership. Another 39 million properties, representing 27.1% of all U.S. real estate, face rising insurance prices and reduced coverage due to high climate risks.
The higher cost to cover climate-related damages has pushed several insurers to leave markets at higher risk of natural disasters, according to a report by Insurify. Last year, 18 climate disasters caused damage costing at least $1 billion each to $165.1 billion, according to the NOAA National Centers for Environmental Information (NCEI).
In the last few years, Allstate, American International Group, Inc. (AIG), Farmers, Nationwide, AAA Insurance, and State Farm have either pulled or reduced coverage across California, Florida and Louisiana. In some cases, these companies chose to withdraw coverage completely, while in others, they are avoiding the most at-risk properties in the state.
If you are struggling with rising prices and want to save money, you could consider shopping for a new insurance provider to lower your monthly premium. Visit Credible to compare multiple insurance providers at once and choose the one with the best rate for you.
HOME PRICE GAINS HIT NEW HIGH IN JULY: CASE-SHILLER
Some protective measures homeowners can take to reduce water-related damage at home include adding water sensors and an automatic water shutoff device. Homeowners can also take these steps to reduce the risks of water damage to their properties and help lower their insurance costs:
Regularly inspecting plumbing fixtures and pipes for any signs of leaks can be a great way to get in front of possible more extensive problems in the future, according to a blog by Insurance Zip Code. Small amounts of water under or around fixtures could indicate a problem early. Addressing leaks promptly can prevent water damage and potential insurance claims.
Clearing the debris from your gutters and downspouts could help prevent water overflow and minimize damage to your home’s foundation and walls. By keeping them clean, you can ensure proper water drainage and reduce the risk of water damage.
“Safeguarding your home against water damage is a proactive step that can save you from costly repairs, inconvenience, and potential insurance complications,” Insurance Zip Code said. “By implementing preventive measures such as installing water flow sensors, automatic shutoff valves, and regularly inspecting your plumbing fixtures, you can significantly reduce the risk of water damage and the associated insurance claims.”
Whether your concern is climate-related water damage or a bursting pipe, it’s best to obtain multiple quotes from several insurance companies to compare prices and what is and isn’t covered. To help you find the best insurance rate for your situation, visit Credible to compare multiple providers at once and choose the right option for you.
BIDEN’S STUDENT DEBT FORGIVENESS MAY BE TAXED IN THESE FIVE STATES
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
