Question

actions to lower home insurance premiums
what could a homeowner do to reduce their home insurance premium? choose two correct answers.

• decrease the coverage on high - value items in the home
• install a sophisticated home security system
• increase the deductible amount on their insurance policy
• file frequent small claims for minor repairs

Explanation:

• For "decrease the coverage on high - value items in the home": Lowering the coverage for high - value items means the insurance company has less potential liability, so they will likely reduce the premium.
• For "install a sophisticated home security system": A home security system reduces the risk of theft or damage, so insurance companies may offer lower premiums as the risk of having to pay out claims is decreased.
• For "increase the deductible amount on their insurance policy": A higher deductible means the homeowner will pay more out - of - pocket before the insurance kicks in. Insurance companies see this as the homeowner taking on more risk, so they will lower the premium.
• For "file frequent small claims for minor repairs": Filing frequent claims makes the homeowner seem like a higher - risk customer, and insurance companies will likely increase the premium or not offer a reduction.

Answer:

A. decrease the coverage on high - value items in the home, B. install a sophisticated home security system, C. increase the deductible amount on their insurance policy