High Home Insurance Deductibles

A great way to help with your home insurance cost is to entertain a higher deductible.  Statistically a homeowner will not have a claim but once in a 10-year period, but I have plenty of clients say I’ve never filed a home insurance claim.  Then I say increase your deductible to save the money year after year.  As your income increases so should your ability to take on more exposure in the event of a claim.  Our lowest home deductible is $1,000 which makes sense for a home valued at $250,000 and under but the $2,500 deductible is becoming the new norm and homes valued over $500,000 a $5,000 deductible makes sense.  Your deductible comes off your claim check or out of your pocket with expenses you have during the claim process.  In my experience with Farm Bureau Insurance, I do not have clients putting in a claim for $2,000 expecting us to pay $1,000, clients recognize the claim will affect their future premiums and aren’t putting in a low value claim.  Once again that $2,500 deductible makes sense.

A home yearly requires maintenance, cut back trees over hanging the home and outbuildings, cut back foliage touching the house, get landscaping done to get the water away from your home.  Use our trades men and women for electrical issues, having your furnace & air conditioner serviced and a plumber to take care of leaks or slow drains.  Not only are there fire extinguishers to check expiration dates on but smoke detector and carbon monoxide detector batteries to replace.  There are new items like water sensors which would come in handy if you travel for work, when you vacation or for those bathrooms or basement rooms that don’t see activity.  A claim is an interruption to your life that never happens at a good time.  A little TLC and care around your home and taking advantage of safety devices will hopefully keep you from experiencing a claim.