Homeowners Insurance: Choosing the Right Deductible
Being a homeowner means being prepared to protect your loved ones and your property, whatever happens. While you take care of their safety, your insurance provider is there to help you out in times of need. In order to benefit from insurance payouts that can help you to repair or rebuild your home, you will be responsible for a pre-agreed sum that may cover all or part of the remedial work needed. This figure is known as your homeowners insurance deductible.
What Is A Homeowners Insurance Deductibles?
The deductible is the amount of money that a policyholder will be required to pay before the insurance company will start to pay out for a claim. The deductible amount is subtracted from the total amount that is claimed when you file a claim with your insurance provider.
There are two different types of deductibles that are usually preferred by insurance providers in Florida. – a dollar-amount deductible or a percentage-based deductible. A pre-agreed dollar amount is the most common way to set your deductible, and it is easy to work out how much you are responsible for should the worst happen. For example, if you have a $1,000 deductible on your home insurance, in the event of an accident or damage from a listed peril, you are responsible for the first $1,000 of accident-related payments, and then the insurance company will handle the rest (up to the policy limit).
How to Choose the Right Deductible
The deductible you choose for your home insurance should always be set as high as you can afford it to be. The higher the deductible, the lower the risk for the insurance provider. This, in turn, will keep your insurance premiums as low as possible.
Another good reason to keep your deductibles as high as you can manage is to prevent future premiums being affected by any claim you file with your insurer. The more claims you file, the higher your premium will be. A higher deductible, therefore, will make it more likely that you will not approach your insurance provider with small value claims, as it will make more sense for you to repair the problem yourself.
Being claim free will make you significantly more attractive to potential insurers, and you may be able to achieve a great deal on your premiums with discounts as high as 20%. If you file a claim and negate that discount, the cost of your premium will increase.
Keep It Within Your Means
While it is beneficial to pay a higher deductible, you should never do so at the cost of your own financial happiness. Everyone should have some kind of emergency savings that can be used in the event of unpredictable circumstances, including the need to pay your insurance deductible. This is why your deductible should be affordable for you without wiping out all of your savings.
Why You Need to Have Affordable Homeowners Insurance in Florida
Homeowners are required to hold homeowner’s insurance coverage in most states but determining the best options for coverage and selection of the deductible should not be taken lightly. It is necessary to evaluate both immediate and long-term financial implications of homeowner’s insurance deductibles to ensure the best decision is made.
Homeowners Insurance from The Sena Group
If you would like to find out more about ways to find the right homeowner’s insurance deductible for you, speak to us today at 561-391-4661.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
