1% Deductible (West, Howe: 2014, insurance, how much)

[JhonnyLever]

1% Deductible. Does that make sense to you guys? Lets take a house that is insured for over 500K and there is hail damage to it. The average cost for fixing roofs (per TDI and Insurance Companies) is about 12K.

With a 1% deductible the Insurance only pays after you pay the first 5K, while charging you about 2.5K a year in premiums. That just seems very steep price to pay for insurance while not receiving any benefits.

[FalconheadWest]

The damage to my house after last year's storm was over $21,000. I had a 1% for $4700 out of pocket. Not sure where you get $12k, but I guess they're averaging in those tiny, older houses that are barely 1000 sqft.

$18k for the roof
$1200 garage door
$1600 painting
Then gutters, screens, a window, and exterior light fixture.

[serger]

Originally Posted by FalconheadWest

The damage to my house after last year's storm was over $21,000. I had a 1% for $4700 out of pocket. Not sure where you get $12k, but I guess they're averaging in those tiny, older houses that are barely 1000 sqft.

$18k for the roof
$1200 garage door
$1600 painting
Then gutters, screens, a window, and exterior light fixture.

If you don't mind me asking, how many roofing squares

[Big G]

You say the 1% deductible costs $2.5K. How much does a $500 or $1000 deductible cost? That's the comparison you need to make.

Keep in mind, you're playing chicken with the train with an X% deductible. You're agreeing to take on the minor stuff and only be covered for catastrophic events. When you have an in-between event like a hailstorm, that's when you take it on the chin.

If your house had burned to the ground, you would have received a check for "only" $495K instead of $499K. Still seem like you're not getting benefits?

--

FWIW, I have a 2% deductible. So I'm out over $10K from the recent hailstorm.

HOWEVER, I've had this 2% deductible for 10 years. If I add up what I've saved on premiums over that time (vs. a $500 or $1000 deductible), I'm still money ahead.

If only I had moved last year.

[FalconheadWest]

Originally Posted by serger

If you don't mind me asking, how many roofing squares

If I'm reading it correctly, as there are lots of numbers, it's 47.67 SQ.

[serger]

Originally Posted by FalconheadWest

If I'm reading it correctly, as there are lots of numbers, it's 47.67 SQ.

Thanks. Of course it depends on many variables, but unless you have some very high end shingles, it does look like prices have gone up a lot since my last experience with this in 2008.

[JhonnyLever]

Big G
Here are the quotes I have received
- 2,600 for 1%
- 2,400 for 2%
- 3,400 for 1,000

For the math to work in my favor, an "in-between event" like a hailstorm damage occurs every 5-5.5 years. The issue I have with these %-deductible is capital outlay when the proverbial "**** hits the fan". You need an additional 5-6K when you are going through a crisis.

In the event of a major catastrophe it really doesn't matter if it is 1K or %-deductible.

Originally Posted by Big G

You say the 1% deductible costs $2.5K. How much does a $500 or $1000 deductible cost? That's the comparison you need to make.

Keep in mind, you're playing chicken with the train with an X% deductible. You're agreeing to take on the minor stuff and only be covered for catastrophic events. When you have an in-between event like a hailstorm, that's when you take it on the chin.

If your house had burned to the ground, you would have received a check for "only" $495K instead of $499K. Still seem like you're not getting benefits?

--

FWIW, I have a 2% deductible. So I'm out over $10K from the recent hailstorm.

HOWEVER, I've had this 2% deductible for 10 years. If I add up what I've saved on premiums over that time (vs. a $500 or $1000 deductible), I'm still money ahead.

If only I had moved last year.

[stephwin]

Originally Posted by serger

Thanks. Of course it depends on many variables, but unless you have some very high end shingles, it does look like prices have gone up a lot since my last experience with this in 2008.

In 2014 ours was $15k for 53 squares of the class 4/40 year shingle.

[MobiusStrip]

15,000 for 53 shingles?!??? Almost $300 per shingle? Am I missing something??

[MobiusStrip]

Originally Posted by Big G

You say the 1% deductible costs $2.5K. How much does a $500 or $1000 deductible cost? That's the comparison you need to make.

Keep in mind, you're playing chicken with the train with an X% deductible. You're agreeing to take on the minor stuff and only be covered for catastrophic events. When you have an in-between event like a hailstorm, that's when you take it on the chin.

If your house had burned to the ground, you would have received a check for "only" $495K instead of $499K. Still seem like you're not getting benefits?

--

FWIW, I have a 2% deductible. So I'm out over $10K from the recent hailstorm.

HOWEVER, I've had this 2% deductible for 10 years. If I add up what I've saved on premiums over that time (vs. a $500 or $1000 deductible), I'm still money ahead.

If only I had moved last year.

I must be missing something. $10,000 is 2% of $500,000, yes? So your roof repair was $500,000? Heck this whole house was listed at 80k.