So how much can you save taking a higher deductible on your home insurance policy?
The term is transfer of risk
The insurance company does not want you to make small claims
I see it every day….claims payouts as low as $500
Consider moving the risk from the insurance company to you
When you do this the insurance companies offers you a lower rate on insurance
The deductible is the amount the insurance company deducts from the claim check
The higher the deduction on the claim check, the lower rate you pay for home insurance
Do you make home insurance claims?
If you are someone that doesn’t make claims,
you need to consider a higher all other perils deductible.
All other perils deductible is any claim that is not a hurricane or named storm.
Here are some common home insurance claims where the all other perils deductible would apply
-Water claims (not flood which is rising water from outside)
-Busted water heater
What about my hurricane or named storm deductible?
Over the past few years this deductible which was once as high as 5% of your insured replacement cost value
Due to many home insurance companies entering the Louisiana home insurance market
the named storm and hurricane deductibles can be as low as 1,000
Consider the rate difference on a 1000 deductible and a 1% hurricane or named storm deductible
If there is a savings you may consider the higher deductible
I’m sure another Hurricane Katrina and this low deductible option will go away
If the insurance companies are offering a low hurricane deductible you may want to get it while it is still being offered
What’s this all about?
Transfer of risk is not just a homeowners insurance strategy for wealthy individuals.
This is something you can do as well.
You can save a considerable amount of money over time by taking on a higher deductible and moving some of those savings to increase your car insurance liability and make sure you have the insurance protection in place to protect you, your family, your investments, your assets and most importantly your future earnings.
And remember only take on the amount of risk you can handle.
Insurance is used to protect you from a financially devastating event.
Raise your deductible to a level that would not hurt you financially.
If a $1000 loss is a financially devastating event,
don’t raise your deductible higher to save money on your home insurance rate
Insurance is to help you sleep at night knowing you are protected,
not to keep you up at night.
My name is Tim D’Angelo and I can review your deductible savings strategy on home insurance
You can contact me at 504.348.3131 or complete the quick form