Your Insurance Deductible and How It Works

Perhaps one of the most important details to understand about your home, auto or business insurance policy is your deductible limits. While most people are familiar with the fact that their policies have a deductible associated with them, they are not always aware of what exactly it is, what the dollar amount of their deductibles are, how that designated amount affects their premium, and the role it plays in indemnifying them should a catastrophic incident occur.

What is a Deductible?

Simply put, a deductible is the amount of money you are responsible for paying out of your own pocket for a claim. For example, if you have an insured loss of $5,000 but a deductible of $500, your insurance carrier would send you a check for $4,500.

Its important to know what your deductibles are, should an incident occur where you need to file a claim. Check out a copy of your policy for those details or call your insurance agent to get the insight on what your deductible limits are for each of the policies you hold.

How Your Deductible Can Save You Money

Did you know that raising or lowering the deductible on your home or auto coverage can make a difference in the overall cost of your policy? Increasing the deductible on your auto policy can decrease your collision and comprehensive coverage premium costs. Likewise, raising the deductible on your homeowner’s policy can reduce the cost of your policy.

Your insurance agent can discuss the best options for a deductible to fit your coverage needs and budget.

Specific Deductibles for Specific Disasters

A handful of disasters like wind, hurricanes, and hail sometimes have a separate deductible depending on where you are located. Otherwise, they are usually covered, subject to a standard homeowner’s insurance deductible.

Flood and earthquake policies are purchased separately and have their own unique deductible rules.

Your insurance agency can guide you on how each of these deductibles work, to ensure that you have an understanding of what you need and how you can put it to use if a catastrophic loss occurs.

No matter the insurance policy, whether you invest in business insurance, commercial insurance, or home insurance, your policy deductibles will vary on a variety of factors. With J. Hoffman Insurance, we value transparency and communicating how each factor may impact your deductibles. Our insurance firm serves Middletown, Warwick, and Goshen, NY, and is here to provide the coverage you need.  If you have any questions or would like a quote on your home, auto or business insurance coverage, don’t hesitate to reach out to us at (845) 239-4787 or by email at vicki@jhoffmaninsurance.com.