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For home insurance, i am getting quotes from couple of companies. My question is should I go for higher deductible and lower premium or the other way. Most of the other coverage is same.

9 Thoughts on Home Insurance, should I go for high deductible?
  1. Reply
    June 20, 2011 at 10:40 pm

    lower deductible and invest the rest…..

  2. Reply
    June 20, 2011 at 11:39 pm

    Yes. Go for the higher deductable.

    One thing that is not often discussed with regards to home insurance is that if you get too many claims (and 2 can be too many) in a short period of time (and five years can be a short period of time) then they can drop you. Not only can your own insurance agency drop you, but once you are dropped it can be extremely difficult / expensive to get homeowners insurance.

    Never make a claim for only a few thousand dollars. Wait for the big my-house-burned-down claim. It would be a shame to waste your insurance on a few small claims, and then be dumped.

    With this in mind, take the largest deductible you can get.

    (For more information, do a web search on the words “homeowners insurance non-renewal.”)

    Good luck.

  3. Reply
    June 20, 2011 at 11:54 pm

    Depends what you consider high… For example, it wouldn’t make sense to get a $ 500 deductible. Come on, who would go thru insurance for something that would only cost them $ 500. I think mine is $ 1000. $ 1000 is worth all the paperwork and hassle of calling the insurance company for me.

  4. Reply
    June 21, 2011 at 12:10 am

    Higher deductible and plan to cover the insignificant things with the premium savings.

  5. Reply
    Kathleen M
    June 21, 2011 at 12:43 am

    You may want to check your mortgage documents. There may be a limit on what you can have as a deductible. If there is a limit on your deductible, it will be stated in your mortgage documents.

    A higher deductible means that if anything happens, that is more out of pocket cash for you. How much do you feel comfortable with having to pay out of pocket in the event anything happens?

  6. Reply
    June 21, 2011 at 1:31 am

    The answer to this depends on your financial condition and how much you are willing to absorb yourself in the event of a loss. As a practical matter, I always recommend high deductibles on all forms of insurance. It reduces the cost of your insurance and decreases the chance that the insurance company will tire of your frequent claims and significantly increase your premiums. Covering the smaller claims yourself also allows you to get repairs done even quicker without having to have an appointment with an adjuster.

  7. Reply
    June 21, 2011 at 2:23 am

    OH, higher deductible and lower premium. You don’t want to put small claims in, anyway.

    BUT, you should be discussing this with YOUR AGENT.

  8. Reply
    June 21, 2011 at 3:22 am

    Definitely higher deductable, and you shouldn’t file petty claims. The odds your house will burn down are so remote.

  9. Reply
    June 21, 2011 at 3:34 am

    It depends on what your financial situation is.

    You don’t get notice that a claim is going to happen – you just come home from work one day and bam….the pipe under your sink burst while you were gone. Can you come up with the 1000 deductible right now? If that’s not possible then you may want to consider a lower deductible – like 500.

    I have a 500 deductible. I don’t have much in savings but I usually have at least that. So, I could come up with 500 if I had to with little to no notice.

    With deductibles…it all comes down to how much can you come up with in the event of a claim.

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