Water damage is one of the largest sources of insurance claims, so making a proactive effort to monitor leaks and minimize the possibility of water damage can help reduce your home insurance premiums. Plumbing-related water damage accounts for 22 percent of homeowner claims filed each year and accounts for 25 percent of the claim dollars that insurance companies pay out. This is second to damage caused by acts of nature.

How Can You Monitor Leaks?
An automatic water shut-off system can identify leaks before they lead to major water damage. These systems act as a circuit breaker for home plumbing. The water is automatically shut off and the homeowner is alerted with an alarm so the leak can be identified and repaired, limiting the water damage.

Save on Insurance
Homeowners who install and use a water shut-off system may be able to avoid the costly insurance claims associated with water damage. Some homeowners' insurance companies recognize the benefits of such systems and may offer discounts to homeowners who install devices to protect against water damage.

Other smart steps to save money on home insurance include:

Improve Your Home
Some insurers offer discounts to homeowners in older homes who upgrade outdated heating, electrical, or plumbing systems. Also a home security system may increase your chances of getting a lower premium.

Pump Up What You'll Pay
If you choose a higher deductible (the amount you pay for any damages to your home), you will pay lower premiums. Be prepared to cover damages up to $1,000 so you can save your insurance claims for larger damages.

Shop Around
Read up on information about home insurance rates and also about complaints related to price, customer service, and a range of other issues. You can find many insurance quotes online, as well as customer feedback about the company. You may find that paying slightly more for home insurance from a company with mainly good reviews is worthwhile.

Double Up
Consider using the same company for home insurance and auto insurance. It's not uncommon to get a reduced home insurance rate from a company if you also have car insurance or other types of insurance with them.

Visit www.flologic.com for more details on how you can protect your home from water damage.