homeowners ins deductible

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bungalow10
Posts: 2311
Joined: Sat Apr 09, 2011 6:28 am
Location: Chicago North Shore

homeowners ins deductible

Post by bungalow10 »

I just realized last week that my homeowners insurance deductible was still set at $500. There's no way I would ever file a claim for less than $1000, or probably even less than $3000 - the risk of being dropped or having rates go up is too high. The $500 deductible is also being phased out by my insurance provider (State Farm).

I can change my deductible to $2200 and save $170/year or $4400 and save $223/year. My current rate is $740/year.

Thoughts?
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Retread
Posts: 703
Joined: Mon Apr 08, 2013 6:29 pm
Location: Southwest Florida

Re: homeowners ins deductible

Post by Retread »

If you can afford the loss, take the highest deductible available. I've always done that with all types of insurance including homeowners, auto and medical. Over time it's cost me very little and saved me tens of thousands.
Bruce
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Sheepdog
Posts: 5783
Joined: Tue Feb 27, 2007 2:05 pm
Location: Indiana, retired 1998 at age 65

Re: homeowners ins deductible

Post by Sheepdog »

I will only make a home owner's claim if it is really necessary. Making a claim for low amounts can hurt you in the long run, therefore, I have a deductible of $4000. Even with that, I probably would not actually make a claim or even ask about it if it was a little higher than that.

I won't even ask them about the possibility of making a claim..not after about 10 years ago, when I asked a simple question about my policy coverage to my then company, Allied. The question was, "If I found mold in my crawl space or attic, how much will I be covered". They told me. (The reason for the question was that I found some white mildew, I didn't tell them that, but I began to wonder.) I never made a claim as I never had mold. What happened though, is that because I asked that question, it went on my C.L.U.E. report as a claim. The company would not remove it. I could not get another company to insure me at a possible lower rate for 7 years after it was removed from the CLUE report. (A C.L.U.E. Personal Property report provides a seven year history of losses associated with an individual and his/her personal property.) As soon as I could, 3 years ago, I got away from them. I will never ask a coverage question again and I will avoid low cost claims.
p.s. I assume you know what a C.L.U.E. report is. If you or someone else reads this doesn't, you can get a free C.L.U.E. report every year at https://personalreports.lexisnexis.com/ ... anding.jsp .
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NoVa Lurker
Posts: 690
Joined: Tue Jan 18, 2011 10:14 am

Re: homeowners ins deductible

Post by NoVa Lurker »

Had a very similar experience to Sheepdog. Our current deductible is near $4000. It seems high, but our homeowners insurance premium is very low, and our overall coverage numbers seem larger than we need.
Alan S.
Posts: 12669
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: homeowners ins deductible

Post by Alan S. »

Retread wrote:If you can afford the loss, take the highest deductible available. I've always done that with all types of insurance including homeowners, auto and medical. Over time it's cost me very little and saved me tens of thousands.
Bruce
Ditto, also eliminated physical damage coverage on autos after 4 years, declined UM and Auto Med. And if you don't have claims you can earn a decent claim free discount. On HO insurance, did not purchase floater coverage on valuables and other frill coverages that are big profit producers for the insurers.
epictetus
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Joined: Sat Mar 10, 2007 5:43 pm

Re: homeowners ins deductible

Post by epictetus »

we went from 1000 to 2000 deductible and there was significant savings in premium.
we asked about deductibles of 3000, 4000, and 5000 but the savings in premiums was very small compared to the savings in premium of moving from 1000 to 2000.

so we stayed with 2000 deductible.
Focus on what you can control
amitb00
Posts: 530
Joined: Sun Jan 01, 2012 8:04 am

Re: homeowners ins deductible

Post by amitb00 »

Just FYI last year I had a claim on my property because of pipe burst. Claim was substantial and was finally settled for a dollar amount. My insurance premium with the same company did not go up at time of renewal though. I was expecting it to go up.
awval999
Posts: 1318
Joined: Fri Apr 08, 2011 10:17 pm

Re: homeowners ins deductible

Post by awval999 »

Alan S. wrote:
Retread wrote:If you can afford the loss, take the highest deductible available. I've always done that with all types of insurance including homeowners, auto and medical. Over time it's cost me very little and saved me tens of thousands.
Bruce
Ditto, also eliminated physical damage coverage on autos after 4 years, declined UM and Auto Med. And if you don't have claims you can earn a decent claim free discount. On HO insurance, did not purchase floater coverage on valuables and other frill coverages that are big profit producers for the insurers.
You declined uninsured motorist coverage?
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