Own a home? Yes, you need home insurance! It covers more than just your belongings, such as Liability Coverage, Additional Living Expenses, and Water Damage Coverage. But what is a Home Insurance Deductible and how does it affect you and your policy? In this article, we’ll discuss what is a suggested home insurance deductible to have, how it affects rates, and what is the difference between home vs condo or rental insurance.
Simply put: A deductible is the amount of the claim you pay out of your own pocket. It is the self-insured retention portion of your policy. Put another way: a deductible is how much risk you are willing to take on yourself.
The standard home insurance deductible is $500 or $1,000. When it comes to your home insurance deductible vs. premium difference, a $1,000 deductible vs $500 deductible might save you approximately $80 per year.
There are some people who have a $300 deductible or even a disappearing deductible if they’ve had no claims for years.
A deductible applies to just about every kind of loss, such as fire, flood, burglary, windstorm. In the case of flood or water damage, however, it is common to have a $5,000 or even $10,000 deductible depending on where you live and how susceptible your area is to floods. In this case, you generally don’t choose your deductible; the insurance company picks it for you.
Valuables you own should be under your home insurance. Items such as a wedding ring, jewellery, sports equipment, collectibles or medical equipment, etc., will have their own home insurance deductible. You can usually choose a $500, $1000 deductible or even choose to have zero deductible for an extra price.
When it comes to a condo insurance deductible or a tenant insurance deductible, it works similarly to home insurance. An insurance company might make you have a $1,000 deductible if it is your first time having insurance, or you might choose to do so yourself to save on premium.
Lastly, it is not a hard choice between a $500 or $1000 deductible when it comes to your home insurance so don’t worry about it too much. The premium difference is not massive. You are much better served to shop around and find the right price and coverage for you or work with a broker to do so. That can make quite the difference in terms of both your price and coverage options.
Many people who are just starting out think insurance isn’t necessary because we don’t own much. We’ve all been there, but you really should have insurance, especially since home, tenant insurance and condo insurance are not too expensive. Insurance should be thought of as a must!
Begin Insurance can help you navigate the right deductible and coverage for your needs. Contact us now for a quote on home insurance for house or condo.