Consider Raising Your Home Insurance Deductible

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Homeowners insurance offers extremely comprehensive coverage for a relatively affordable premium.   Considering all the different lines of coverage offerred, including the home, other structures, loss of use, contents and personal liability, homeowners insurance is a bargain.   However, the frequency of claims – meaning how often policyholders file a claim – is fairly low compared to other types of insurance.   In 2013 just under 5% of homeowners insurance policies had a reported claim.   In a nutshell, when you need to use your homeowners insurance it will likely take good care of you, but those occurences will be many years apart.

Because the frequency of claims is so low, buying a higher deductible on your home insurance might make perfect sense.   Even if your claim frequency averages once every 10 years (higher than the national average) the savings are still significant.   Consider the following example of price savings comparing 2 common deductible amounts – $500 and $1,000.   The quote is based on a 10 year home in Las Vegas with $250,000 of dwelling coverage:

Deductible $500 $1000
Annual Premium $843 $721
Savings (after 10 years) ($1220)
Net Savings (after deductible) ($720)

The premium savings over 10 years is substantial, even when subtracting the difference in the deductible at the time of a claim.   The longer the frequency between claims, the more an higher deductible make sense.

When shopping for Nevada homeowners insurance, make sure you request quotes with several deductible options.  Do the math and decide for yourself if a higher deductible makes sense.  At Safeguard Insurance, we have found that a $1,000 deductible is often the ideal compromise.  It’s an amount most homeowners can afford and provides reasonable net savings.

Safeguard Insurance has been in business since 1998.  We have insured thousands of homes in Nevada, Utah, Arizona and California.   Call us at 702-638-0022 or visit our Home Insurance Quote Page to get an instant quote with up to 6 different home insurance providers.

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