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I would like to know your thoughts on whether to go with a 1% or a 2% deductible on a homeowners policy? I am seeing across the board huge homeowner's insurance increases right now there is a huge jump between 1 and 2 percent deductible rates.
With my current insurance it would be a 38% hike in my annual policy rate to go from 2% to 1% deductible for All Peril and Hail & Windstorm.
I could pay the deductible for, say a new roof. But it would hurt. Would take probably 1/3 of my saving earmarked for such events. Yeah, that would hurt. Paying the difference of 2 to 1 percent on my policy - it would take 6 years of payments to make up the difference in policy cost. Maybe should just bite the bullet and do it.
Are you referring to a deductible of 1-2-percent of the overall value of the home or a 1-2-percent increase in insurance premium cost or ??
In Florida, the insurance companies attach a 2-3-percent hurricane deductible. This means that a $500K house is subject to a $10-$15K up-front, per-storm deductible before coverage kicks in (or with a $50M condo, a $1.5M deductible). This is in addition to the regular policy deductible. Unless one suffers a catastrophic storm loss, one is pretty much self-insured.
Are you referring to a deductible of 1-2-percent of the overall value of the home or a 1-2-percent increase in insurance premium cost or ??
In Florida, the insurance companies attach a 2-3-percent hurricane deductible. This means that a $500K house is subject to a $10-$15K up-front, per-storm deductible before coverage kicks in (or with a $50M condo, a $1.5M deductible). This is in addition to the regular policy deductible. Unless one suffers a catastrophic storm loss, one is pretty much self-insured.
That's a my percent deductible of dwelling value.
I just got a couple of quotes from A-rated companies, better coverage, 1% deductible, for only 13% increase over my current policy that had 2% deductible. Even their quotes for a 2% deductible were much lower than my current policy.
I've been with this insurance company for many years and had no claims on homeowners or auto. I don't see why I should continue with them when they jack up policy prices out of nowhere for no reason that pertains to me personally. So much for customer loyalty.
I chaps me to have to even look into changing insurance because I feel like it's a losing game. But changing companies and lowering the deductible with let me sleep better.... for a while.
I went with an insurance company that had a flat deductible for everything. Because using the 1% or 2% formula that so many insurance companies tend to use equals the cost of a new roof for me, which for me is going to be the most likely thing I'd make a claim on. So I'd rather have a flat deductible. And the premium for a flat deductible was about the same as many companies that charged a 2% deductible.
I live in TX where the risk of hail is high and tornadoes moderate. I took 1% on the roof and 2% on everything else. Not sure if this is an option to you. I also added earthquakes as it is fairly cheap but the risk is rising due to fracking.
I went with an insurance company that had a flat deductible for everything. Because using the 1% or 2% formula that so many insurance companies tend to use equals the cost of a new roof for me, which for me is going to be the most likely thing I'd make a claim on. So I'd rather have a flat deductible. And the premium for a flat deductible was about the same as many companies that charged a 2% deductible.
Insurance companies for Texas now do percentage deductibles. All companies did away with the "flat deductible". I used to have that years ago - it was either 500 or 1,000. When I got a new roof, it worked out that I didn't pay anything because the roofing company gave me a discount equal to my deductible. Those days are gone. 1% is the best you can do in this state now.
I live in TX where the risk of hail is high and tornadoes moderate. I took 1% on the roof and 2% on everything else. Not sure if this is an option to you. I also added earthquakes as it is fairly cheap but the risk is rising due to fracking.
I'm using an insurance agent and have gotten quotes for 2% hail/1% all other peril; $2% hail/2% other peril; %1 hail/1% other peril. None of the 3 companies would do a smaller hail deduct. than other peril. But I'm still taking quotes. I agree that the percentages you have are optimal.
Do you mind if I ask you which company you are with?
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