Most insurance policies have a provision for “deductibles” and homeowners’ insurance policies are no different. If you’re not familiar with the term, the “deductible” amount on a policy is the amount that you would pay towards a claim amount before your insurer would contribute. For example, if the deductible for damage to your home under your policy is $1000, and a storm caused $2000 worth of damage, you would pay the first $1000 and assuming the claim was accepted, your insurer would pay the remaining $1000.

The amount of deductible you choose affects the cost of your homeowners’ insurance premium. A higher deductible will result in a lower premium and a lower deductible in a higher one. There are two basic reasons for this:

• A higher deductible saves the insurer money on claims.

• Insurers known from experience that higher deductible amounts prevent clients making minor claims.

Does that mean you should always opt for a higher deductible? Not necessarily. It will depend on your financial circumstances and in particular, whether you are likely to be able to afford to repair minor damage to your home. For example, if someone smashed your front entry doors in an attempted burglary and the cost of replacement was around $1000, could you afford to have the repairs undertaken immediately? If not, having a lower deductible might be more suitable.

Find out more ways you can save on your St Petersburg FL homeowners’ insurance by calling us now.