Before securing homeowners insurance, you need to have a good understanding of how the deductible you choose will affect your premium and your out-of-pocket expenses. Insurance companies typically use one of two different deductible calculations.
\nInsurance Deductibles as Percentages:<\/p>\n
This type of deductible is the least common. Not all insurance companies calculate deductibles in this way, but the trend has become increasingly popular in Florida due to the extensive damage caused by hurricanes or windstorms. These increased deductibles are meant to limit the insurance companies’ exposure in these high-risk areas. <\/p>\n
With deductible percentages, the deductible is usually set as 1 to 5% of the insured value of the home. If, for example, your home is insured for $400,000 and you have a 2 percent deductible, you\u2019d have to pay out $8000 before the insurance company begins paying out. As this example illustrates, this amount is more costly than the traditional deductible. Typically, (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Before securing homeowners insurance, you need to have a good understanding of how the deductible you choose will affect your premium and your out-of-pocket expenses. Insurance companies typically use one of two different deductible calculations. Insurance Deductibles as Percentages: This…<\/span><\/p>\n