If you want to pay the least amount possible for your home insurance, you can achieve this by bumping up your deductible to a really high amount, such as $10,000. This may seem crazy to you, but it will help you save a lot of money; however, there are certain things you should consider doing if you decide to follow through with this. Here are a few things to understand if you would like to increase your deductible to a really high amount.
You need to know what this means
A home insurance deductible is the amount of money you must pay before the insurance company will pay the rest if you suffer a loss and file a claim. If you raise your deductible to $10,000, you may want to make sure you have an emergency fund set up just in case a major disaster occurs and causes damage to your home, because this is a lot of money to suddenly have to pay if something happens.
While you will pay lower premiums for a policy like this, there are still risks, which means you should make sure you do everything you possibly can do to minimize the risks that something bad will happen.
Understand the primary risks and protect your home against them
There are a number of things that can happen that can lead to losses and problems with your home, and here are some of the top causes of claims on home insurance policies:
- Damage from hail, wind, and storms – This type of damage is hard to prevent, simply because you cannot control the weather.
- Theft – When a home is burglarized, it can result in thousands of dollars of damage and losses. You can reduce your risks of this happening, though, by getting a good home security system installed.
- Plumbing issues – A third top reason people file home insurance claims is due to plumbing issues. If a leak occurs in your house, your home and belongings might get water damaged. If plumbing pipes freeze, it can lead to major problems and issues in a home. If your sump pump fails, it can also lead to flooding in the home. Taking all the necessary steps to prevent these issues can help you avoid losses in your home. This can include installing a leak-detection system and a backup battery system for your sump pump.
If you would like to learn more about high-deductible home insurance policies, contact an insurance company today.