Question

actions to lower home insurance premiums
what could a homeowner do to reduce their home insurance premium? choose two correct answers.
file frequent small
claims for minor
repairs
install a
sophisticated
home security
system
increase the
deductible amount
on their insurance
policy
add a swimming
pool to increase
property value
decrease the
coverage on high-
value items in the
home

Explanation:

To determine actions to lower home insurance premiums, we analyze each option:

• "File frequent small claims..." increases risk for insurers, so premiums rise. Eliminate.
• "Install a sophisticated home security system" reduces risk (less chance of theft/damage), so insurers may lower premiums. Valid.
• "Increase the deductible amount..." means the homeowner pays more out - of - pocket, so insurers lower premiums (less risk of large claims from them). Valid.
• "Add a swimming pool..." increases property value and risk (more liability, maintenance issues), so premiums rise. Eliminate.
• "Decrease the coverage on high - value items..." reduces the insurer's potential payout, so they may lower premiums. Valid. But the question asks for two correct answers. The two most direct and common ways are installing a security system (reduces risk) and increasing the deductible (shifts cost to homeowner, reducing insurer's risk exposure).

Answer:

B. install a sophisticated home security system, C. increase the deductible amount on their insurance policy