What you should know about insurance deductibles

Do you know the deductible on your homeowner’s insurance policy? How about the one on your auto policy? Most people don’t pay attention to their deductible until they have to file a claim. And by that time, it’s too late to change. That’s why it’s a good idea to know the out-of-pocket amount you’re responsible for in the event of a claim.

In most case, you’ll pay a set deductible that generally falls between $200 and $1,000. If you have a problem with your home or vehicle and have to file a claim, the deductible is simply subtracted from the amount your insurer pays out.

But deductibles aren’t always a set amount. In the case of Hurricane Sandy, for instance, many homeowners are paying a percentage of their home’s value. For those folks, the deductible is running 1 to 10 percent of their properties’ insured value. No hurricanes in sight here, right?

Coverage for other calamities also can have percentage deductibles. In Utah and California, the bigger threat is an earthquake. A percentage deductible typically applies to those who buy quake coverage for their homes.

Any questions about deductibles? If so, give us a call. You can learn a bit more by visiting this link.

Sharethis page