Knowing how your deductible works is one of the best ways to make sure that you are saving on your homeowners insurance policy. Your deductible is the amount that you will have to pay when you make a claim before your insurance coverage kicks in. Choosing the right homeowners insurance deductible can help to make sure that you have the protection that you deserve, all at the right price.
There are two types of home insurance deductibles to choose from, either a percentage of your total policy coverage or a set amount. With a set amount deductible, you will pay the same amount whenever you make a claim. This means if you have a $500 deductible, you will have to pay $500 out of your own pocket when you make a claim before your insurance coverage will kick in. With a percentage deductible, the amount that you will pay is based off of your home’s insured value. If your home’s value is $300,000, and your deductible is 3 percent, you will have to cover the first $9,000 worth of damage before your insurance policy will start paying.
It is important to keep in mind that your homeowners insurance deductible will have to be paid every time you make a claim. It is not like other insurance policies in which you only have to meet your deductible once a year.
One of the best ways to save money on your home insurance policy is to increase your deductible. The higher your deductible is, the less you will have to pay each month for your coverage. Just make sure that you choose a deductible that you will be able to afford at any moment.
Contact the insurance professionals at Idaho Insurance / Affordable Insurance in Caldwell, Idaho for all of your homeowners insurance needs, and to ensure that your house and your belongings are properly covered.