Increase Your Home Insurance Deductible & Save
One way to spend less on premiums
What's a home insurance deductible? It's the amount that a policyholder has agreed to pay on a claim before the insurer takes over. Deductibles usually range from $500 to $5,000. Many policyholders set their deductibles low so they can avoid as much out-of-pocket expense as possible.
However, there are many advantages to having a higher deductible as well. The higher your deductible is set, the LOWER your monthly premium will be. Insurance companies give a lower rate to homeowners with higher deductibles because these homeowners will most likely not file as many small claims and they will be responsible for more of the repair costs than a homeowner with a lower deductible.
You must take great care in opting for a higher deductible, though. Remember, this is what you'll have to come up with in the event of a claim. That means your deductible should be an amount that you would feel comfortable paying. Otherwise, you could find yourself without the help you need in an emergency.
As a rule of thumb, try and keep your home insurance deductible set as high as possible (to save the most money on premiums) while still feeling comfortable with the amount in the event you would have to pay it in a loss.
Don't stop here. Deductibles aren't the only way to save on homeowners insurance policies. You also can take advantage of potential discounts for insuring your home and auto with the same provider, having a monitored security system, owning a newer home and even for having deadbolt locks. Learn more about discounts here.
If you need more information about home insurance, visit our FAQs. Ready to get started right now? Call 1-877-295-3422 and speak to an agent licensed in your state to get the benefit of up to eight quotes for your business.