Buying a home comes with the responsibility of getting an insurance that will make sure any damages incurred will be taken care of. However, when you get homeowners insurance, you need to consider deductibles.
What Is a Homeowners Insurance Deductible?
A homeowners insurance deductible is the amount you need to pay before you can claim money from your plan. For example, if you have filed a claim for $1500 and your homeowners insurance deductible is $1000, you will recover $500 from the claim.
What Are Its Types?
There are two types of deductibles on your homeowners insurance: fixed and percentage. Your fixed deductibles can be $500, $1000, or $2500.
Percentage deductibles can be useful when your house is at risk of a specific kind of damage like wind, hail, or flood. Plus, when you have an expensive house and can manage smaller costs or damages, a percentage deductible will significantly lower your premiums.
For example, if you have a $1 million house, you can opt for a 1% insurance deductible, which is $10,000. You can’t claim anything below $10,000, but your premium will be lower, giving you the room to take care of smaller expenses. Higher the deductible, lower the price of your premiums.
Who Pays the Deductible?
The person who owns the house or the policy will pay for the deductible. However, you do not pay this amount in cash. This money is simply deducted when you file a claim. For example, if your deductible is $1000 and you file a claim for $2,500, you will get back $1,500.
What Is the Standard Homeowners Insurance Deductible?
There is no standard amount for the homeowners insurance deductible. Most companies offer deductibles that go upwards from $1000. Some also offer deductibles as low as $250 or $500.
Limit your claims as much as possible to lower your premiums. Want to learn more about homeowners insurance or deductibles? Contact the experts at Steve Wilk Insurance. You can also visit our office at 310 S Main Street, Suite C, Lombard, IL 60148.