Roeder Smith Jadin, PLLC
Property Insurance | Construction Defect | Community Associations
Serving Our Clients With Integrity, Honesty & Tenacity

Free Initial Consultation

Toll Free: Local:


Free Initial Consultation

Toll Free: 800-342-2710

Local 952-314-5226


Is it worth it to raise your homeowners insurance deductible?

Having homeowners insurance is the responsible thing to do if you own your own home. However, the typical Minnesota household has many important expenses that can strain the bank account. When looking for ways to increase the budget, one thing many people in the U.S. consider is how to reduce their homeowners insurance premiums.

One option is to raise the deductible on your policy. Usually, when a customer is willing to pay a higher deductible, the insurance company will lower the premium. Depending on what state you live in, your premiums can drop by several percentage points.

Of course, this is a kind of gamble. You are betting that your home will not become severely damaged or destroyed someday. Or at least that you will be able to afford the inflated deductible if it ever does happen. A story by KYW-TV estimates that 5 percent of homeowners ever file a claim, so it is highly unlikely that disaster will strike. However, if it does, you had better make sure that you have enough money to pay your deductible, which might now be twice what it used to be -- if not more.

Those not willing to take such a risk may be able to reduce their premiums by bundling with your car insurance, or see what other discounts the insurance company offers. For example, sometimes you can get a discount for paying premiums via auto pay, or by having a home security system.

Of course, should you ever need your homeowners insurance, hopefully the company will offer a fair settlement of your claim. If it doesn’t, you may need the help of an experienced attorney.

No Comments

Leave a comment
Comment Information