The Deductable Debate: Homeowners Edition

18 Nov The Deductable Debate: Homeowners Edition

The purpose of a deductible is an amount that an insured is liable for in a loss. So in the event of a homeowner’s insurance loss the deductible is the amount you, the insured, is required to cover in the event of a loss. The deductible can range from $25 to around $5000. So today we are going to look at the benefits of both a high and low deductible. The amount of your deductible for a homeowners policy/ renter’s policy can alter the price of your premium dramatically. The reason it is so influential a factor is the amount of claims that can be submitted by the insured is much greater the lower the deductible. Then again one of the advantages is that if you have to make a claim the out of pocket expense is much less. So it all comes down to choice, a low deductible is going to be more up front but in the event of a claim, your cost will be lower. For a higher deductible the premium is usually lower, but if your $200,000 house burns down, $2000 is not such a big deal. As well the amount of claims filed is a heavy factor in the Application process . In fact many companies will decline to insure you if you have any losses in the past three years. If you have any questions feel free to give us a call