HOW TO CHOOSE YOUR HOME INSURANCE DEDUCTIBLES

The cause of deductible variations…

The premiums on a High Deductible policy are much cheaper but there’s a risk..

As with your family health insurance, or your dental insurance, or even your auto coverage. You can lower your monthly insurance costs by raising your deductible. And in North Carolina, among a few other states that can be a substantial amount.

Deductibles are the amount that the owners has to pay because the policy simply does not pay all of the costs of a loss, by design. Once a $500 deductible was common on home policies, but now it seems that $1,000 is pretty much the standard. Of course the policy owner can set the deductible; we have seen $100, $250 and $5,000. deductibles in the greater Charlotte area. But the average is $1,000 and the average premium for that insurance seems to be about $1,200.

A research firm called InsuranceQuotes.com found that raising your home deductible to $2,000 from $500 could save you about 16 percent on average across the nation but much more, almost 70 percent in North Carolina! That might knock over $700 off your monthly bill. A tempting discount.

The catch of course is that if your home suffers a damaging experience like storm damage to your roof, or you back into your garage door or set the kitchen stove on fire, you risk not having the money on hand to cover the repairs. If you have damages that total $1,600. you have a $2,000 deductible, the Insuror will not pay you a dime. If, like many American families, you’re living paycheck to paycheck, and you’re not a consistent saver, be careful setting your deductible too high just to save a few dollars each month. One professional couple in south Charlotte set their deductible at $5,000 but when it came time to replace their roof due to a storm claim, they were prepared because they had “banked” the savings from the lower premiums. Over the course of four or five years, their reduced rates had amounted to the amount of their high deductible.

Premiums are not always based solely on the amount of the deductible. There are other built in factors in certain states (and remember all insurance is state-by-state) like the history of hail storms, hurricanes, and whether or not your home is old or new. Some home improvements like a sprinkler system or a security system. Some older folks, over 55 with some companies, can get up to 10 percent off.

You can have your premiums paid directly from your bank account and get a discount with some firms. Many Insurors say that they will give you a break if you have several policies, but homeowners should be careful and check out that boast; it is often thriftier to buy policies for cars form one provider and homes from another.

Call and ask for a FREE inspection; we can look at your policy with you but remember that can be a technical, complex legal document. The best person to talk with is your agent, or even your adjustor, if he or she ever visits to determine a claim

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