When shopping for home insurance, it’s important to consider the following aspects related to the deductible:
- Affordability: Determine how much you can afford to pay out of pocket if something happens to your home. Also, consider how much you can afford in monthly or annual insurance premium payments.
- Risk Tolerance: Assess your comfort level with risk. A higher deductible means you’ll pay more out of pocket if you file a claim, but it also lowers your policy premium.
- Insurance Company’s Policy: Understand how your home insurance company handles deductibles.
- Deductible Amount: Weigh the cost difference if you change the deductible amount. Raising your deductible can lower your policy premium, but ensure you can cover that amount if you ever have to file a claim.
- Coverage Types: Homeowners insurance policies have different deductibles for different coverages. For instance, a policy may have a dwelling coverage deductible and a personal property deductible.