High or low? Out-of-pocket or paid for? Read on for guidance on what deductible is best for you.
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!
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.
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.