Know Your Deductible

Know Your Deductible

It pays this time of the year to review your homeowners policy and know your deductible. It used to be that insurers would simply write a $250 or $500 deductible (the amount you are responsible for in the event of a claim). Well, things have changed. $1,000 all peril deductibles are the norm these days - if you can get it. It's not uncommon to see $2,500 deductibles customers request in order to keep the premium down. The past few years we have seen the entrance of different kinds of deductibles. You may see a named storm deductible of 3% or more, depending on how close to the coast your home is. In this instance, you have a SEPERATE deductible in the event the claim damage is a result of a tropical storm has reached enough intensity to warrant an official name. A normal deductible would apply for damage caused by any other peril. I have seen some homeowners insurance in Myrtle Beach, SC or Charleston, SC have a 5% named storm deductible. Regardless of the percentage, the deuctible would be 3 or 5% of the total value of the home on the policy. With a 3% deductible and a $200,000 valued home your deductible would be 3% of $200,000 or $6,000. You may have a 3% Hurricane deductible. This would only come into play if you have damage from an actual hurricane. Then you may have a windstorm deductible. This would be a seperate deductible if you have damage from ANY windstorm. Different companies have different deuctibles and guidelines so it pays to know what your deductible is.