How Does a Home Insurance Deductible Work?

Most homeowners in Fisherville, KY have a basic understanding of their home insurance deductible. We all know that when we file a claim, we’ll be expected to put up a bit of money ourselves, typically a flat cash amount, in order to claim our check.

This roughly defines a deductible, but leaves us with a few unanswered questions.

For instance: Why?

Don’t we already pay a monthly premium? So what’s the deductible for?

Put simply, insurance companies will have policyholders pay a deductible when making a claim to ensure that the policyholder has some “skin in the game,” so to speak. The deductible helps to ensure that people can’t make frivolous claims. If home insurance covered every single loss with no deductible, there would be people filing a claim for missing TV remotes and lost socks. The deductible helps to discourage that kind of frivolous use of an insurance policy.

Also worth knowing: If you only plan to make an insurance claim in the event of your home burning down or something like that, you can pay lower premiums by setting a higher deductible. You generally don’t want to have a deductible higher than you could comfortably pay at a moment’s notice, but if you only plan to file a claim in extreme circumstances, it may be better to save money month to month with a higher deductible.

If you have any more questions about your home insurance deductible in Fisherville, KY, or if you’re looking to get covered, get in touch with TruePoint Insurance. TruePoint Insurance can help you to get a good deal on a great policy.