How to choose a better homeowners insurance deductible

[Augusta]

Having a homeowner insurance deductible isn't always the. problem but the issue lies with choosing the best option for you.
There's always the struggle of choosing either the high or low deductible but the fact is that having a high or low homeowners deductible depends on your situation.

The truth is that if you do not have savings and would struggle to pay a high deductible when you file a claim, then it is better you go for low deductible, though this will means you paying a higher premium. but if you have savings for your homeowners deductible especially for when you file a claim, then you should go ahead to go for a higher deductible to save on your homeowners premium

So the bottom line is that if you have the money then you should opt for a high homeowners deductible as this act tends to lower monthly premiums by an outstanding margin.

Having this high deductible in place means that you won't be calling the insurance company for small claims you would tackle routine maintenance issues on your own and this will add up to reduce the premium. So a higher homeowners insurance deductible might be better if you have the money.

 

[Jasz]

A deductible is the amount of money you have to pay out of pocket before your insurance company will start paying anything. The higher the deductible, the less coverage you have and the more you pay out of pocket for repairs or damage.
If you have a high deductible on your homeowners insurance, it can save money in the short term — but it could end up costing more in the long run. Here's why:

It can be cheaper to pay for a loss than fix or replace it. If you're only paying $50 to replace a broken window, rather than paying thousands for someone to fix it, it makes sense to choose the cheaper option. But if your deductible is high enough that you end up having to pay multiple times that much before the insurance kicks in, then it might not make sense at all.

Your monthly payments will be higher if you have a low deductible and need many repairs made. You'll end up paying more overall because instead of paying $500 per broken window, you might end up paying $1,000 each time (and every time!). A high deductible evens out over time by reducing how much coverage you need upfront.