PREVENTING EXPENSE

Hypothetical Situation:

INITIAL COSTS:
Let’s say Mr. and Mrs. Smith have a Home Standby Generator system installed at their Florida home for a total cost of $8000. The averaged value increase of their home would be 64.2% or $5136.00. The remainder of the investment cost is $2,864.00.

RECOUPED COSTS:
The Smiths find their home owner’s insurance viewed the system as a theft prevention investment which reduced their homeowner’s insurance with a discount of 5%. The Smiths also financed their system with a home improvement loan and the interest was fully deductible on their taxes.

PREVENTED COSTS:
Many of the financial benefits are in the expenses it prevents.

In September 2017, Hurricane Irma devastated Florida causing at least $6 billion in property damage across the state and toppling thousands of trees to homes and power lines. For days, power is out except for locations with emergency power supplies. The Smith’s community is without power for 7 days.

Fortunately, the Smith’s home was spared any direct hit or major damage from the hurricane. Unlike many of their neighbors, they have a comfortable and safe home to live in.

• Without their own Home Standby Generator system, the Smith’s would have been forced to travel out of the area to find temporary lodging. Mr. Smith, retired and in his early 60’s, relies on a medical CPAP to breath comfortably at night. The Smith’s save not only the travel cost, they avoid approximately $750 in hotel costs. ($100 per night plus tax).

• A refrigerator and a freezer with seafood valued at approximately $800 is saved from spoilage.

• Their home security system and security lighting stays on while most other homes are pitch black and either miserable to live in or empty while the owners are away. The Smiths have no loss due to vandalism.

• The temperature is a sweltering 90 degrees with the humidity making it feel closer to 95 degrees. The Smith’s remain comfortable and their home is spared damage from heat and moisture.

• The Home Standby Generator system kicks in within seconds of the electrical grid power loss and powers their entire home. Some neighbors try to rely on portable generators, but find they have minimal power output with major inconveniences and safety risks. Even when they are able to find stations with ample gasoline, they are spending an average of $50 per day on fuel after spending $600 plus on a portable generator.

• The Smith’s still have running hot and cold water, appliances for cooking and cleaning, electronics, medical equipment and more. Life inside the Smith house is normal. The Smiths, being comfortable and healthy, even volunteer to help those less prepared.