Do You Understand Your Deductible?

young insuranceInsurance Deductible Basics

Investing in the right homeowners insurance policy is the best way to ensure that you will not be financially devastated due to an accident at your home. Knowing how your deductible fits into your coverage is the best way to ensure that you are getting the most out of your policy.

A deductible is the amount that is “deducted,” or taken out of any insurance loss. Deductibles are meant to help you and your insurance company share the risk of your policy. When any repairs are needed at your home, you must pay the deductible of your insurance policy before your insurance company will start paying for the repairs.

When choosing a deductible, you have the option to choose a set dollar amount or a percentage of the complete amount of the policy. Typically, the larger your deductible, the less you will have to pay on your home insurance premiums each month. Your deductible can be found on the declaration page of your insurance policy.

The deductible for a homeowners insurance policy works slightly different than some other policy deductibles, such as your health insurance policy. While the deductible for your health insurance policy only has to be met once a year, the deductible for your home insurance policy has to be paid each time you make a claim. The more claims you make throughout the year, the more times you will have to pay your deductible. Before you file a claim, make sure that it is more than your deductible so that you will not be wasting any money.

For all of your homeowners’ insurance needs, contact the insurance professionals at Desert Empire Insurance in Palm Desert, California. We will work with you to ensure that you have the right amount of coverage, all at the right price to fit your budget.