Homeowners insurance deductibles are an important part of a home insurance policy. A deductible decides how much you will have to pay when you file a claim and affects your policy’s cost. Typically, the higher your homeowners insurance deductible, the lower your premium.

What’s the average homeowners insurance deductible?

“Not all that long ago, a $100 deductible was the standard deductible amount, but in keeping with inflation, the standard moved to $250. As property claims started to escalate and new coverages were developed, it wasn’t long until $500 became the new standard,” said partner P.J. Miller.

P.J. added that many insurers also offer disappearing deductibles. In those cases, companies reduce your deductibles if you have no claims over a period. So, your $500 deductible may shrink to $100 if you haven’t filed a claim in three years.

P.J. said some insurers have also attached higher deductibles to roof claims. Insurers usually want homeowners to replace their roofs after 20 or 30 years. Roofs protect the homes against the elements. Home insurance companies often check a homes’ roofs to make sure they are in working order.

Additionally, P.J. noted insurers have increasingly attached a higher deductible for roof damage as wind and hail claims have increased in recent years.

What’s the right home insurance deductible?

The homeowners insurance deductible that’s right for you depends on your financial situation.

“Go with the highest deductible you’re comfortable with, whether that’s psychologically or monetarily,” P.J. said. “And don’t think about it on a one-year basis as that tends to skew the thinking because you want to reduce your homeowner premium as much as possible over the course of your homeownership. A substantial deductible like $1,000 or $2,500 might save you $100 or even $200 to $300 or more on an annual basis, and after five years, you’ve put a dent in that homeowner premium.”

Continue reading the full article to learn more about homeowner deductibles and how to choose the right amount for you.

Questions about homeowners insurance? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.