High Deductible Home Insurance - 2 Things to Consider

High deductible home insurance helps a homeowner lower the premium cost associated with the insurance.  The use of a high deductible home insurance policy means that the homeowner is willing to take on more of the risk associated with their home and thus reduce the insurance company’s liability.  This may be a good tactic for a homeowner that can afford to set aside the amount necessary to cover and losses that arise in a value up to the deductible amount.

Top Considerations for High Deductibles

There are several considerations when purchasing a homeowners insurance policy with a high deductible. Two chief concerns are the amount of the deductible and resources necessary to meet and claims loss. It is important to make the deductible an amount you can reasonably attain in the case of an emergency. Do not set a deductible that is so high, you won't be able to pay for it. For example, do not buy deductibles that are $10,000, unless you have that amount in a bank account.

The best thing to do is save your money for your deductible and save it in an interest-bearing account. Do not place the money into an account that is not easy to liquidate. Also, do not use the money for any other purpose. For example, you can open a money market account in the amount of $2000.

 

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