Deductibles: Making Your House Insurance Work for You

Your Florida house insurance premiums should reflect your financial capabilities as well as provide adequate coverage for your home and possessions. One way to help ensure that is to adjust the rate of deductible on your coverage. Generally speaking, the higher the deductible paid by the policy owner, the lower the premiums.


What is a deductible? How can this work for you? A deductible is the amount paid by the policy holder prior to money being paid out by the insurer. For example if you have a deductible of $200 and a television worth $800 is stolen from your home, your insurer would contribute $600 to the loss.  A higher deductible there means that your insurer will pay less in the event of a claim, but it’s because of this that the cost of premiums tends to be lower when you opt for the higher deductible.

There are a number of added factors to consider, including whether or not the policy is paid at actual cash value (cost minus depreciation) or replacement cost (the cost of replacing the goods).

Should you be in a position where you are looking to save money on your Florida house insurance premiums, you may well decide to negotiate a higher deductible. You then may be able to tailor your deductibles to suit your current financial position. To arrange a consultation and discuss the options available regarding deductibles, contact one of our agents.

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