What Is Mitigation Credit in Homeowners Insurance?

Mitigation credits reward you for taking steps that lower the chance of water damage in your home. When you install protective devices or make improvements, your insurance company may reduce your premium. The credit reflects the reduced risk of a future claim.

For example, a backup pump that works, a backflow valve on your sewer line, or a water leak detection system can qualify. You usually need to provide proof of installation, such as a receipt or a photo. Ask your insurer what specific features they recognize.

To get a mitigation credit, you must tell your insurance company about the improvements. You cannot assume they will find out on their own. Contact your insurer and ask what documentation they need.

You may need to send in a photo, a receipt, or a short description of the upgrade. Some insurers ask for a quick inspection by a qualified professional, like a plumber or an electrician. Keep records of all work done so you can provide proof if asked.

If water damage does happen, your mitigation credit does not prevent you from filing a claim. You still need to act quickly to dry out the area and prevent mold. Turn off the water source if you can, and move belongings to a dry place.

For cleanup and drying, the pros can inspect the affected areas and help with flooring, drywall, or attic damage. They can also assist with documenting the damage for your insurance claim. Check your policy to understand what is covered.

• Turn off the main water valve
• Remove standing water with a wet vacuum
• Move furniture and rugs to a dry area
• Open windows for ventilation
• Take photos of all damage before cleanup