{"id":524,"date":"2017-09-22T12:01:56","date_gmt":"2017-09-22T16:01:56","guid":{"rendered":"https:\/\/www.protectiveagency.com\/blog\/?p=524"},"modified":"2024-02-26T01:44:55","modified_gmt":"2024-02-26T05:44:55","slug":"good-deductible-home-insurance","status":"publish","type":"post","link":"https:\/\/www.protectiveagency.com\/blog\/good-deductible-home-insurance\/","title":{"rendered":"What is a Good Deductible for Home Insurance?"},"content":{"rendered":"

For most people, paying the insurance bill isn\u2019t the greatest time of the year. You probably have home insurance, car insurance, health insurance, and more. The costs tend to add up quickly for most of us.<\/p>\n

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While costs keep rising, we strive to find ways to save cash. Some consider cutting coverage. Others look for ways to lower expenses without getting rid of a policy of three. One good way to do just that? Increasing the deductible on your home insurance policy.<\/a><\/p>\n

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Home Insurance Deductibles<\/strong><\/p>\n

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Your home insurance deductible isn\u2019t a cost like your premium is. You don\u2019t pay your deductible to the insurance company. The deductible<\/a> is something you agree to cover before the insurance company begins to pay out.<\/p>\n

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For example, if your deductible is $5,000, then you\u2019d pay $5,000 out of pocket for any damages to your home. Once you have covered the deductible, then your home insurance policy would kick in, and the insurance company would begin to pay out.<\/p>\n

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The most common type of deductible is a dollar-amount deductible of $1,000. The example above is of such. Another type of deductible is a percentage-based deductible. This allows you to pay a small percentage of any damages incurred while the insurance company would pay the rest.<\/p>\n

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How to Find the Ideal Deductible for You<\/strong><\/p>\n

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Now that we\u2019ve discussed what a deductible is, let\u2019s look into finding the ideal deductible for your situation. While there is no such thing as a \u201cgood\u201d deductible, as we all have different needs, there are a few general guidelines to consider.<\/p>\n

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First, the deductible is how much you can afford to spend out of pocket. It\u2019s a personal thing. If you don\u2019t have a lot money in the bank or coming in each month, then you\u2019ll want a higher deductible. Having a high deductible makes the monthly payment smaller. Having a smaller deductible makes the monthly payment larger.<\/p>\n

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If you can\u2019t cover a $5,000 or $10,000 deductible payment, then you won\u2019t be able to repair your home properly in a situation when home insurance kicks in. As such, you\u2019d want to pay for a lower deductible on your policy. The problem with lower deductibles is they always equate to higher home insurance premiums.<\/p>\n

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What is a Good Deductible for Home Insurance? <\/strong><\/p>\n

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It\u2019s not easy finding the ideal home insurance deductible for you and your family. There\u2019s a lot of factors to consider. From premiums to out-of-pocket costs, you need to think through what you\u2019re willing to pay.<\/p>\n

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Here are a few factors to consider:<\/p>\n

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