To get the most out of your homeowners insurance policy, you must choose the right deductible.
A deductible is the amount of money a policyholder needs to pay toward damages or a loss before the insurance company comes in and covers for the rest of the expenses. This deductible doesn’t go to the insurance company like a premium or monthly bill does. Rather, they just subtract your deductible from the claim that was filed. For example, if you have a $2,000 deductible and your claim is for $15,000, then your insurance company will send out a check for $13,000 with your name on it.
How to choose your deductible right.
The best way you can choose your deductible is by doing what feels most comfortable to you. This answer may not give you the exact dollar amount you were hoping, but it’s true. Since your deductible is something that you’re going to have to pay, it’s important that you can actually cover this amount.
The higher your deductible, the lower your monthly premium is going to be. This is because you’re assuming a higher financial risk for lower payments. That doesn’t mean that you should strive to get the lowest premium/highest deductible that’s available, because what if a $20,000 disaster strikes and you only have $15,000 in the bank? It’s about creating a balance between your short-term costs and your long-term costs. The more you can afford in the short-term, the more you’ll save in the long-term.
Having the right deductible on your home insurance policy will help make sure that you and your home are properly covered in the case of accidents and emergencies. Contact the independent insurance professionals at Udell Family insurance in Westlake Village, California for all of your home coverage needs.