What Is A Homeowners Insurance Deductible?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe deductible is the amount of a claim that you have to pay. In a homeowner’s policy it only applies to property coverages. For example, if there is a fire in your kitchen and resulting damage costs $25,000 to repair, the company will make the repairs after you have paid the deductible. Deductibles come as flat amounts or as a percentage of the total amount of coverage. The greater the deductible the lower the rate for that portion of the policy. Deductibles do not apply to many coverages of the homeowner’s policy, the most important being the liability coverage.Answered on May 5, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! In insurance, the deductible is the amount that you have to pay before the insurance company starts paying. Generally the higher the deductible ( your responsibility) the lower the premium that you will have to pay. If you are a safe driver, and do not have much risk for an accident, then a high deductible might save you a ton of money over the life of your policy. If you have a high deductible on your health insurance, and have frequent health issues requiring doctors visits, a high deductible might be a more expensive way to go. The best thing to do is to balance out your risk tolerance and ability to come up with the deductible with the affordability to safely make your payments. Have your agent run a couple of examples for you with different deductibles so you can see the difference in the premiums. Thanks for asking!Answered on May 9, 2014flag this answer
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