A generator is crucial for homes across the U.S. for when a bad storm rolls in and takes your power out. When the power is out, several areas of your home suffer—the food in the refrigerator unable to keep cold, the sump pump, etc.
These risks can raise the likelihood of you having to file a home insurance claim. It is no wonder, then, that adding a generator to a home can reduce your home insurance costs. But there are a few key things to consider before you do so.
Make Your Home Storm Resistant
One of the best ways to keep your home insurance costs low is to make it safer. You may already do this with a home security system and using smoke detectors. However, a generator can help to stormproof your property. It helps to reduce claims you may file as a result of the storm. Some insurance companies call this a loss mitigation credit.
Here are a few examples of how it may work for you.
You install the generator, and a storm takes out the power for six hours. In most cases, you need to toss out the food you have in the refrigerator or freezer as a result of being without power. You can sometimes file a home insurance claim for it. Nevertheless, the generator helps avoid this loss.
In an ice storm, keeping the heat on in your home is essential. Otherwise, frozen pipes can develop, burst and lead to water damage. Generators can help minimize this risk, too.
Discuss the potential discount with your home insurance provider. Some will recommend a specific type of generator. Others will require you to place the generator outdoors only. There are risks to using generators. They can be expensive to operate, too. However, in a storm or other incident, they can be important to maintaining the integrity of your home.
Before making changes to your home or adding a generator, speak with your insurance agent about your home insurance options. It is crucial to make sure your home is covered in case of an accident.