When you are considering homeowner insurance, it’s good to be aware of what type of deductible you have. Some insurance companies charge deductibles that are a percentage of the home’s value, rather than a flat dollar amount. For example, if your deductible is 0.5 percent and your home’s value is $500,000, your deductible would be $2,500.
Some people would prefer to pay a higher deductible and get a lower monthly premium. It’s important to do the math and find out what that half-percent will cost you. Keep in mind, your home’s value is likely to increase over time, which means your deductible will, too.
Read more about homeowner insurance on our website. Questions? You can contact our consumer advocates online or at 1-800-562-6900.