If you’re wondering what this is all about, a Homeowners Insurance Deductible is the total sum of money that you are liable to pay before you get paid for an insured casualty by your insurance company. The following requested monetary amount that you will claim from the HomeownersInsuranceCover.net insurance company is the entire casualty amount subtracted to your deductible.
So, if your deductible is $5,000, and your property endured an insured casualty of $60,000, your insurance company will grant you with $55,000 after you settle your deductible. The sum of money you pay in Homeowners Insurance Installments, whether monthly or yearly, immediately corresponds to the amount you set your deductible – high or low.
So, when you fix your deductible, you are taking two things into consideration:
The amount you can pay for insurance payments
The amount you can pay from your wallet if unexpected casualties happen
If your deductible is high, your insurance installment is lower, but it could also appear to be a huge jackpot when you file a request during the time you need it.
How is a Homeowners Insurance Deductible paid?
It is paid on a per-claim basis, which means that if two properties are damaged within a month apart, you will pay for two different deductibles. If one single claim accounts for more than one property parts, you will only pay for one.
For example, if your house together with your veranda, and garage are destructed by fire, a report of the house’s physical damage and other connected properties is needed, and you will only pay that deductible from your own pocket once.
1. Do I have to settle a deductible for the legal shares of my policy?
Aside from guaranteeing Home Insurance, daily living costs, and personal possessions, your policy would also include your personal liability costs and also settles the amount for you in case your guest gets wounded in an accident inside your house. However, not like your property insurances, you do not make a payment on deductible when it comes to claims on liability.
2. What about endorsements?
In case your policy includes additional insurance endorsements like equipment failure, water line, and service line, you might have to make payments of the deductible for single requests about those insurances.
Types of Homeowners Insurance Deductibles
If you will try to look at the declarations page of your Homeowners Insurance Policy, you’ll find that there are two types of deductibles:
This is a fixed amount type that you make payment for out of your personal money when you file a request amount to compensate your casualty. It is usually ranging from $500-$2,000, but higher and lower insurance plans are also usual.
If you have a $2,000 deductible, and you request a claim of $8,000 casualties, you need to pay the $2,000 before your company transmits you a check of the remainder of $6,000.
These are specific to storm or hurricanes and computed based on the usual 1% to 10% of your house’s insured amount. If your shelter is insured for $200,000 and you have a 1% deductible, $2,000 would be subtracted from the requested amount. If the casualty summed to $15,000, your Home Insurance would be $13,000 after settling your deductible.
Here are the different disaster deductibles insured by your homeowners’ insurance policy with the type of deductible:
Storms and Hurricanes – Percentage
Floods – Standard or Percentage
Earthquake – Percentage
Wind and Hail – Standard or Percentage
To know what amount of deductible is suitable for you, it is best to ask from a licensed agent who can provide open-minded scounseling to guide you in considering the expenses and advantages of the policies of high and low deductibles.