When shopping for homeowners insurance, it's helpful to know the general home insurance deductible average. In insurance, a deductible is the amount of money you're responsible for paying before you can use your policy's coverage.
Understanding the basics of how deductibles work from one insurance company to the next will help you in choosing a policy and provider. Here are the basics to know:
Homeowners insurance deductibles are either a flat dollar amount or a percentage. The average dollar amount generally ranges from $500 to $2000, and the percentages between 1% and 5%.
You can pay higher than the minimum deductible if you prefer. This can help lower your rates and regular expenses.
Your homeowners insurance deductible determines how much you need to pay out of pocket. This amount is adjusted based on a claim filed versus the amount you pay in premiums.
If you have an emergency fund, you might prefer a higher deductible amount with lower premiums. While you'll need to pay more for a claim, your savings will ease the financial burden.
The average price for homeowners insurance can fluctuate. Choosing a higher deductible can help reduce your premiums by up to 6%.
However, the maximum you save by choosing the deductible is different for each insurance company. Make sure to go over all the details with your chosen provider to get the best possible coverage for your needs.
Lori Lockhart originally from York Pennsylvania has been a Sarasota resident and realtor for over 16 years. She specializes in Sarasota, Siesta Key, Lakewood Ranch, Bradenton, Venice and the surrounding areas. She is skillful at negotiating and partners with many professionals to offer the best resources to her clients. She is always accessible to her clients and listens to their needs first and foremost. She works with first time home buyers, luxury home owners as well as investors to help them achieve their real estate goals. She has a broad knowledge of the construction industry as she is a licensed Florida General Contractor. She is able to assess construction costs which are such a benefit to her clients as well as offering them advice with regards to new construction. Lori is energetic, hard-working, and strives to exceed her client's expectations by assisting them in every aspect of the transaction. Whether you're new to the area, buying a retirement home or investing in property she has a vast knowledge of it all!
