Choosing the deductible amount is one of the most vital steps when purchasing homeowners insurance policy in Florida for your valuable investment and belongings. Every policy has a deductible so you have to make a decision regarding how much of deductible would help you getting the most out of your policy. Suppose you have a $1,000 deductible and you file a home insurance claim for $15,000. Your insurance company would pay you $14,000 for that claim (the deductible is subtracted from the amount claimed)
There are two types of deductibles: a percentage based (considerably higher) and a dollar-amount. The difference between them is just of calculation. The guide below will help you clear:
There is an inverse relation between insurance deductible and the premium you pay for your policy. The higher your deductible, lower will be the cost of your premium. This is why experts says, raising deductible as much as you can would help you getting the most out of your Florida home insurance policy, but that does not mean you should raise your deductible beyond the limits specified by insurance experts.
When choosing a deductible, the more you pay in the short-term, the more you’ll save in the long-term. There are also other reasons to raise your deductible. If you file a claim for any amount, your premium cost will rise because the insurance company will consider you a riskier homeowner to insure. The more claims you file, the higher will be your premiums. Therefore, there are circumstances in which you have a low deductible, and might not work in your best interest to file a claim. Suppose you have a $500 deductible. If the wind destroys a part of your roof and causes $1,000 damages, you probably wouldn’t file a claim if you can afford to pay out of pocket expenses for the cost of damages. Yes, you could ask your insurance company to cover the $500, but the cost of your premium might increase (depending on the amount claimed and the number of claims filed)
Want to know more about homeowners insurance policy in Florida deductibles? Please visit our website www.insurefloridians.com and contact our professional agents. You can also get your free online home insurance quotes now!