Homeowners insurance allows your home and belongings to stay protected, throughout many perils and lengthy lawsuits. Within your home insurance is a deductible - an amount that you are responsible for paying before your insurance kicks in, within a claim. Selecting the right deductible for you allows your finances to stay in your pocket and your assets to be protected.
Therefore, a deductible is dependent on your financial picture. If you set your deductible to $1,000, but don't have that cash on hand when you file a claim, you'll be left in a less-than-ideal situation. Here are some helpful ways in which you can evaluate the best deductible for you!
Deductible Types
There are generally two types of deductibles: a dollar amount and a percentage based. The difference between them is how your deductible is calculated and the value of your home that you're insuring.
Financial Considerations
When selecting a deductible, you're really balancing the short-term cost that you can afford (your deductible) and the long-term cost of your policy (your premiums). The more you can afford in the short-term, the more you'll save in the long-term - a higher deductible means lower monthly premiums. Before selecting a high deductible right off the bat, consider if you can afford this cost out-of-pocket in the event of an accident.
While you can get a vague idea of what your homeowners insurance deductible should be, talk to a trusted industry expert at Jack Stone Insurance Agency to secure the right limit! We serve homeowners in the Antioch, Brentwood, and neighboring cities in California with reliable insurance.
