Insurance Policy Discounts or Coverage Requirements
Different insurance company carriers may have different requirements for a water security system to qualify for their policy credits or coverage, especially if you have already had a water damage claim with them or your prior carrier, or if you are buying a house that has already had a claim with the previous owner. One commonly held requirement in such cases is that the system must actively monitor for leaks throughout the entire pressurized pluming system and automatically shut off the water to the whole house in the event that a leak is detected. Different leak protection systems detect leaks in different ways so its important to understand what your insurer is requiring before you invest in protection to comply with their expectations!
While manually shutting off your water when you leave your house is certainly a good idea, it alone is not the best measure for water damage prevention nor does it usually qualify for annual insurance policy credits.
This is due to a few factors:
- Users may forget to shut off the water.
- Users may choose not to shut off the water on any given occasion.
- Large leaks occur and cause great damage while the house is occupied but the occupants are asleep or otherwise far enough away from the leak source that it continues for hours unbeknownst to them.
- Small leaks can go on for months in walls or other locations out of sight where they can slowly rot away structure and foster toxic mold growth.
Some homeowners find that shutting off the water is not an option if the house is not being completely winterized. If your heating boiler, humidifiers or ice-makers are going to remain on while the house is vacant, they will need access to water.
In addition to the policy discounts offered for a qualified basic installation, some carriers will also offer increased premium credits if you have your system connected to your central alarm for live central station monitoring with accredited monitoring companies. These discounts can reach as high as 12% off annually in some cases and are affected by the following factors:
- Who your insurance carrier is
- The state you live in
- Whether or not your installation meets carrier requirements
- Whether or not your system is monitored for alarm notification
- Other policy credits you are already getting
Some insurance carriers may subsidize a water security system and installation labor up to a specified allowance if you have suffered a water damage claim. Others may offer different benefits. If you are a homeowner’s insurance policy holder, contact your insurance broker to find out what incentives if any, are available to you and once you know, come back to us for the most experienced guidance and best-fit options in the industry!