We often receive emails asking specific insurance-related questions. Here are some of the most common questions, with responses from our licensed insurance representatives.
I recently raised my deductible on my homeowner's policy from $500 to $1,500 and saw a decrease in my premium. Now, I'm thinking about raising it to $5,000. What kind of savings can I expect?
The differences in the deductible amounts between $1,500 and $5,000 may not impact the total premium in such a significant manner. The reason for this is in the event that there is a total loss of the home (say by fire) and a claim made on the property, the difference in the deductible amount would not make much of a difference with respect to the claim payout.
For example, if the loss was covered for $200,000 and the deductible was $5,000, the insurer would payout $195,000 which is not that great of a difference from making a payout of $198,000 or $199,000 had the deductibles been $2,000 or $1,000 respectively.
Return to Questions Library
* Although accurate at the time of publication, this information is subject to change and Kanetix® is not responsible for any damages caused as a result of the information included in this response. Always speak with your current insurance supplier, or a licensed insurance representative, to answer your specific questions.
