Homeowner – Frequently Asked Questions

Considering Purchasing a Policy?

Some of your Questions:

Q. What is a deductible?

Homeowners insurance includes a deductible for property damage, which is the amount that’s deducted from claims payments. This is often referred to as co-insurance or the amount you are responsible for as the insured. Instead of selecting a deductible for every type of claim, you can choose an all-peril deductible that applies to several incidents, whether it’s a stolen laptop or a burst pipe.

When you receive a claim check, your insurer subtracts your deductible amount from the total claim payment amount. For instance, if you have a $1,000 deductible and file a claim for roof repairs to the tune of $10,000, your insurer would issue a payment of $9,000 and you would be responsible for the remaining $1,000.

Depending on the insurer, you may have a separate deductible for claims involving wind and hail. Liability claims generally don’t apply a deductible.

Q. How high should you set your deductible?

The typical home insurance deductible is between $500 and $1,000. Choosing a higher amount will usually reduce your premium, however, you’d have to shoulder more of the financial burden if an incident occurs. Choosing a lower deductible, on the other hand, means you might have a higher premium but your insurer would bear the greater amount of the claim expenses and/or repairs.

Q. What to do in the event of a claim

How to File a Homeowner Claim

Q. What tools are available to document personal belongings prior to a loss?

Be Smart. Take Part. Document and Insure Your Property