How to Choose the Right Home Insurance Deductible

How to Choose the Right Home Insurance Deductible

Maximize your home insurance by choosing the right deductible for you.                                                             

Choosing the right home insurance deductible is a delicate balancing act.  Most insurance companies allow you to balance your deductible against your premium, meaning that the higher deductible you are willing to accept, the lower premiums you’ll have to pay annually.  When buying home insurance, choosing a high deductible to reduce your premiums may seem attractive.  However, when disaster strikes, many homeowners find that they cannot actually afford to pay their deductible.  On the other end, some homeowners may choose a lower deductible to ensure that they are covered in case of an emergency.  However, if these homeowners consistently avoid filing a claim, they may find themselves losing money with their higher premium payments.

When choosing your deductible, it is important to determine the amount of risk you can assume without significant financial hardship.  If you are financially comfortable and can afford to pay a good amount for out-of-pocket repairs, then it is probably worth it to assume a higher deductible in return for lower premiums.  For homeowners that are not as well off, it is necessary to study your finances and decide what you can afford to pay should an emergency arise.  If you can afford to pay more than the minimum deductible, do so.  Though your savings might seem insignificant, they will add up over the years.

Please remember that the influence your deductible has on your premium differs depending on state and local regulations and by individual insurance company.  To pick the right home insurance deductible and see how much you can save in Carlisle, Pennsylvania, contact Miller Insurance Associates.