How to decide on a home insurance deductible
Are you in the market for a home insurance policy? Are you looking to protect your home? Chances are that you’re going over various home insurance options. However, you might not be sure about what to select as a home insurance deductible.
You may not know what you would be willing to pay for out-of-pocket. You also might not know which option will help you sleep better at night because you’re new to home insurance.
How do you decide on a home insurance deductible? Here are three tips for deciding what the deductible on your home insurance policy should be.
Figure out what you can afford
What’s your budget? Did you spend all of your money on the down payment for your home? Could you afford to fix a broken window on your home? Do you want to save upfront on the premium, or do you want to save when it comes to filing a claim?
Choosing your insurance deductible is all about your financial situation. If you can’t afford a huge home insurance deductible because you don’t have any savings at the moment to cover damages, then you might have to settle for a lower deductible. The goal is to have the deductible amount saved in a bank account somewhere. This way you won’t have to stress out when making a claim.
Think about how handy you are
A friend of mine raised his home insurance deductible so that he can have a lower premium because he prefers to work on things on his own. He doesn’t plan on filing claims for minor issues. He feels that he can use the savings from the premium over time to cover damages. I personally am not handy at all. Luckily, I can call this guy up and offer him a few drinks in exchange for installing a new light or replacing a window.
Base it on the worth of your home
Is your home brand new? Did you get some work done on it lately? Think about this when you decide on your deductible. If you just put in a new roof, you won’t have to worry about buying another roof for a few more years. If you're buying the home to fix it up, then you won’t care about how high the deductible is because you won’t make a claim: you’re likely to want to fix everything up on your own anyway.
That’s how you can decide on your home insurance deductible. You worked hard for this home. It’s time for you to enjoy it and throw a few parties.