Modifications to your deductible could save you hundreds!
According to a recent Forbes article, most people who insure their homes have a very low deductible. The thought process seems to be that when a disaster happens the insurance company has to take care of most of the costs. What some of us are forgetting though, is how OFTEN a disaster actually happens. The same article estimates that over 35 years, the average homeowner has just 1 claim!
Low deductibles on a homeowners policies are becoming more rare, as making claims for a low amount is never recommended. Increasing your deductible shows the insurance company that you do not plan to make small claims, and allows the company to lower your rate. Here’s an example of deductible savings :
*CURRENT DEDUCTIBLE $1,000*
Increasing your deductible to $1,500 saves about $60 per year. That’s $2,100 over 35 years.
Increasing your deductible to $2,500 saves about $121 per year, that’s about $4,235 over 35 years.
Deductible options range from a low of $500 to a high of $50,000, so ask your agent to run some quotes for you! You can make changes to your policy any time!