3 Reasons To Choose A High Deductible For Your Home Insurance
Home insurance is a necessity if you have a home, but it can be an expensive monthly bill to have. If you feel like you are paying too much right now for your home insurance, you should consider raising the deductible on your policy. When you raise the deductible, you will still have sufficient coverage for your home, but you will have other benefits. Here are three good reasons to consider raising your deductible on your policy.
You will save money
The first reason to consider doing this is to save money. Home insurance premiums are based on dozens of factors, but one of the leading factors that affects the price you pay is the amount of the deductible on your plan. If you currently have a $500 deductible, you could save up to 20% by raising it to $1,000. If you currently have a $1,000 deductible, you could save up to 37% by raising it to $5,000.
If you are currently paying $1,200 per year for home insurance and can save 20%, you will be able to save $240 per year by switching to a higher deductible.
You can invest the extra money
The second reason to consider upping your deductible is to give yourself more control over your money. If you could save $240 per year, you could take this money and invest it. When you invest money, you can earn even more money. This not only gives you a way to make money on your money, but it gives you the freedom to control where your money goes.
You are only likely to use the insurance for major events
Finally, you should understand that having a high deductible is not really a bad thing. Most homeowners only file insurance claims for major problems. If you experience a minor problem with your home that is covered by your insurance, it would not make sense to file a claim. Each time you file a claim, you take the risk that your insurance premiums will increase.
Insurance experts suggest that most homeowners only file claims every 9 to 10 years; however, there are many homeowners that never file claims. Why spend a lot of extra money to have a low deductible when the chances of having a claim are so low? Instead, you could save money and have control over your money by choosing a higher deductible.
If you are currently paying too much for your home insurance, you may also want to ask for quotes from other companies. This too is a great way to find the best rate for your needs.
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