Throughout the ages there has been a single perpetual factor that occurs in societies that revolve around socioeconomic levels. At the top of the pyramid lie the top-earners. When looking at cyclic trends, which involve the top-earners and their quality of life, there appears to be a rather dominant flow of big innovations. Initially, those at the top of the pyramid have innovations and technologies that are not present or readily available for others to enjoy the use of. However, as the products become more commercialized and demand increases for them, they slowly witness the trickle effect and change from a hot commodity to a social norm. Right now, generators are poised to experience the same trend because of unexpected helping factor homeowners insurance.
Take a look at airplane travel for example. Decades ago, traveling by air was thought to be a luxury only reserved for those who were earning large sums of money to afford the form of transportation. Now, traveling via airplane has become as common as driving a car for most people! Another example is cell phones, which initially were only available to the elite of society. But now, cell phones are virtually ubiquitous.
When this trend is applied to generators, it becomes evident that the stage is being set for a major boom within the industry. A little over a decade ago when hurricanes were seeming to appear all the time, only top-earners could afford to spend money on a standby generator, which averaged around the cost of $40,000. Years down the line, companies like Generac, Briggs and Stratton, and Kohler have created a market that caters entirely to that need of backup generators in a time when natural disasters are a major concern to society.
Generators are still in the ongoing process of becoming a common household item though. One major factor that will certainly help pave the way for that phenomenon to occur is reduced homeowners insurance. How exactly do the two relate? Right now there are insurance companies like Pure Insurance that are working with Kohler and Briggs and Stratton to reduce homeowner costs. Right now, if a homeowner has a million dollar policy on their house, their average deductible is 3-4%. Essentially this means that $30,000 will be coming out of their pocket. However, with the program instated by Pure Insurance, the customer’s deductible would be reduced by about 90% if they own a home generator.
Imagine if these policies are applied on a much wider scale for insurance companies such as State Farm or All State Insurance. Homes would be much more protected against mold growth, security system outages, loss of perishables and much more. Once the trickle effect takes place and the policies become a more widespread occurrence, generators will become much more apparent in every house. Soon it will be comparable to appliances like refrigerators, which are essential in every American home.