While filing an insurance claim, a homeowners insurance deductible is the amount you pay to cover the damage, after which the insurance company pays the rest. The deductible amount can be a fixed dollar value, a fixed percentage of the claim amount, or a mix of both.

When Should You Pay Deductibles?

For every single claim you file where the amount is more than the deductible, you have to pay your share. Depending on the type of disaster your home is prone to, insurers sometimes encourage a high deductible for specific risks. For example, California is relatively more prone to earthquakes than other states, so insurers usually offer a separate earthquake policy to protect your home and personal property. Similarly, hurricane-prone areas in the country have specialized homeowners insurance policies dealing solely with hurricanes.

What Is the Typical Deductible for Homeowners Insurance?

Higher the deductible amount, the lower your insurance premium. Usually, people choose deductibles of $1000 or 1% of the claim amount. Apart from the likelihood of disaster and the amount it would cost, you should consider some other factors:

Financial Position

If you are financially comfortable, you can take up a policy with a higher deductible, if the trade-off is only an extra $200-$300 a year or so.

Claims History

Your insurance agency has a record of all the claims you have submitted in the past, allowing them to charge you a higher premium. If you feel you can fix the problem in a cheaper way yourself than through a claim, you can opt-out of using your policy. It is advisable to survey multiple insurance agencies and get their quotes before choosing the best option. Always consider these factors when you are looking for the best deals on homeowners insurance. Want to learn more about getting a homeowners insurance policy? Contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to get you covered.