You are in Phoenix. We also have a Tucson site.

You are in Phoenix. We also have a Tucson site.

You are in Phoenix. We also have a Tucson site.

Are Your Plumbing and HVAC Systems Making Your Home Insurance Rates Higher?

March 13, 2016

When most people think about ways to save money on their home insurance, they don’t usually consider their major systems, such as the HVAC and plumbing. The truth is, either of these systems could have an effect on your insurance rate. Luckily, the effect isn’t always a negative one. So how do you know if your HVAC or plumbing is hurting or helping your home insurance? Check out the following tips to see if your home operating systems are driving your homeowner’s premium sky high, or if they’re helping keep the price nice and low.

Space Heater Hazards

Since the winters in Phoenix are so mild, a central heating system may seem pointless. Why spend money on a central heat and air unit when you’re only going to use it for air conditioning in the warmer months? Space heaters are handy to have and may seem like a logical choice for surviving the coldest days of the year, but they have an ugly secret: insurance companies hate them.

Although they are both inexpensive and portable, space heaters are a tremendous fire hazard. For that reason alone, they drive up insurance rates. Want to save money on your insurance? Turn on the central heat and ditch the space heaters. You’ll save money and keep your family safer, too.

Old vs New HVAC Systems

Some policyholders get the impression that an older HVAC system should be cheaper to insure than a brand new system. Surprisingly, this isn’t always the case. An older system is more likely to have electrical problems that could result in a fire; so several insurers have begun to offer discounts for homeowners with new HVAC units. Granted, buying a new HVAC unit to save money on your insurance isn’t necessarily realistic, but it is a nice perk if you’re in the market for a new system.

Did you know that you should have your HVAC system serviced at least once annually Unfortunately, many homeowners don’t realize this fact and wait until something goes wrong with their unit before they call a professional to take a look. While a visit from your local HVAC repair company won’t directly save you money on your insurance, it could help prevent the system from malfunctioning. This, in turn, will spare you from filing a claim that would increase your premium. Insurance companies are always happy about policyholders taking steps to prevent claims.

Water Damage Concerns

If you’ve been a homeowner for a while, you’ve probably had a leaky pipe at some point. Although they seem to be inevitable, don’t discount a minor leak just because it isn’t driving up your water bill. A small leak can still cause water damage if it’s allowed to continue for a long period of time. According to the Environmental Protection Agency, an average household leak could release over 10,000 gallons of water a year. As you probably guessed, that’s a lot of water damage! Don’t wait until signs of damage are apparent; call a plumber and have the pipe fixed before the water makes it necessary to file a claim.

Looking for more ways your HVAC or plumbing systems can help you save money on your insurance? Talk to your local Phoenix insurance agents to see if your insurer offers any special discounts for systems that are new or well maintained. You may be able to save a lot of money with one quick phone call.

Related Reading