Tips for Choosing the Right Deductible for Your Homeowner's Insurance Policy

When you purchase your first home, your lender will tell you that you are required to purchase homeowner's insurance for it before you close on the loan. If you have never purchased a homeowner's insurance policy, you might have questions about how much you should choose for the deductible on the policy. If you are wondering about this, here are several things you should know.

What is a deductible?

The first thing you will need to understand is what a deductible is and how it may affect you. Simply put, a deductible is an amount you are required to pay when you file a claim before your insurance company will pay the claim. You get to choose the deductible amount when you buy an insurance policy, and you can choose anywhere from $250 to $10,000, or more. The amount you choose will affect your payout when you make a claim, but that is not the only effect it will have. It will also affect the amount you pay for the insurance policy.

Deductibles affect your rates.

The main reason people do not choose really low deductibles is that they cost more money. If you compared two policies that offer identical coverage, you would see a huge difference in the price of the policies if one had a $500 deductible and the other had a $10,000 deductible. Therefore, one of the key factors you should consider when choosing your deductible amount is the budget you have. If you can afford to pay more for a policy, then choose a low deductible. If money is tight, you may want to choose a deductible that is higher, as this would result in lower premiums for the policy.

Deductibles affect your payout too.

If you ever file a claim on your policy, you need to keep in mind that you will have to pay your deductible before the insurance company would compensate you for the remainder of the bill. If, for example, a storm damages your entire roof, it could cost $10,000 to fix the roof. If your deductible is $5,000, would you be able to come up with this much money to pay your part? If not, you may want to keep your deductible lower than this, simply so you can come up with the money if you ever need to.

If you are not sure what type of homeowner's policy to choose or what amount to pick for your deductible, speak with those at a business like Boone Ritter Insurance.

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The Principles Of Pet Insurance

Hello, my name is Bobby Parker and this is my blog about pet insurance. My wife and I have four dogs and we consider these animals our children. Whenever one of them gets sick or is not feeling well, we always take them to the veterinarian for care and treatment. Since surgery and other veterinary procedures can be expensive, my wife and I decided to purchase pet insurance. Before we bought the policy, I did a lot of research about pet insurance and I discussed the different kinds of policies that are available with my insurance agent. By doing this, we were able to get the type of insurance coverage we needed for our pets. Since I know how important animals are in the lives of many people, I wanted to write this blog to share the information I learned about pet insurance.

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