October 8, 2014
What You Need To Know About Homeowners Insurance Deductibles
As a homeowner, you have a responsibility to understand your homeowners’ insurance policy to the fullest. This vital insurance policy provides you, your family, and your home with the protection everyone deserves. Unfortunately, many homeowners simply pay their premium each month without understanding what they’re paying for. Deductibles are one of the most misunderstood parts of homeowners’ insurance policies. However, it’s extremely important that you understand your deductible, because you will not receive coverage until the deductible has been paid when a claim is filed.
For homeowners’ insurance policies, you have the choice between a percentage deductible and a dollar amount deductible. The type of deductible you choose will determine your form of payment. If you live in an area that is particularly vulnerable to earthquakes, floods, hail, or mudslides, it’s highly recommended that you choose the percentage-based deductible.
Many homeowners looking to save on their homeowners’ insurance premium are given the option to raise their deductible. While this is a cost effective way to spend less on your homeowners’ insurance premium, many homeowners fail to realize that they’ll be required to pay that elevated deductible if an accident occurs or if a claim is filed. For example, if you have a $1,000 deductible on your homeowners’ insurance policy, you must pay that $1,000 before your insurance company will pay the remaining $9,000 in damage costs.
When safeguarding your home, it’s important that you thoroughly consider the various options you’re presented with and make an informed decision. We understand this can be a confusing topic, which is why we’re here to guide you through the process and provide you with insurance solutions that make sense.
Contact Brewer-Lloyd Insurance Group in Mesa for all of your Arizona homeowners’ needs. We can help advise you in choosing the right balance between your homeowners’ insurance deductible and premium.