How Should I Choose my Deductible?
Choosing your homeowners insurance deductible is based on several factors, such as the amount of coverage needed. Depending on your budget and how much money you have on hand for out of pocket expenses you will be able to choose between several different deductible amounts. Keep in mind that the lower your deductible the more you will pay on your policy premium each month. Homeowners insurance is important and protecting your home and your possessions should be a top priority. If you do not have an insurance policy now - go online and begin comparing quotes from different companies to find a rate you can afford. There are many options available on the internet and finding the perfect homeowners insurance policy is just a click away.
If you can afford some out of pocket expense if you are faced with a disaster and you must file a claim with your homeowners insurance - you should choose a higher deductible amount. If you are able to pay $1000 or more for your deductible you will save money each month on your premium. The deductible is the amount of money that you are responsible for before the insurance company issues a check. For example, if your home is affected by a fire, flood, or other peril you may have a claim that equals $10,000. If this is the case - your insurance policy will send you a check for $9,000 - which is the amount of the claim minus your $1000 deductible.
When shopping for a homeowners policy online - the deductible plays a large role in the amount of money you will pay for insurance. The higher the deductible - the lower your premium rate. People often do not understand that the deductible does not necessarily have to come out of your pocket right away. If your claim is for a specific amount - you may be able to replace some items with the insurance check and pay for other items as the money becomes available. Look closely at your budget and choose the deductible amount that is right for you.
If you know that you will not be able to pay a lot of out of pocket expense if your property is damaged or stolen you will want to choose a low deductible amount. Most policies will allow you to reduce your deductible to as low as $50 per covered claim. For example, if there is a burglary in your home and all of your electronics and jewelry are stolen - you will be responsible for the first $50 of the claim. The homeowners insurance company will send you the rest of the money to replace your belongings. This is a great choice if you do not have a lot of cash on hand. Remember - you will pay more each month for your insurance premium - but if you need to make a claim it will not cost you a lot of money.
Most homeowners insurance policies will allow you to choose different deductible amounts for different portions of your policy. If you are more comfortable with a higher deductible on property damage, but would like a lower amount for personal liability these are both options. When you begin comparing policies online - find the homeowners insurance quotes that fit your budget. You need to make sure you have an adequate amount of coverage at a price you can afford. With all of the different options available - shop around for the best quotes and choose the deductible that fits your needs.