Why Percentage Deductibles Are NOT Client Friendly

 Why Percentage Deductibles Are NOT Client Friendly: 

What is your home deductible?

What is your deductible on your house? Have you looked at it in the past year?  If not, you should because it might have changed if you are with 3 of the top 5 home insurance companies.  There are certain companies that have decided to change from set to number deductibles such as $1,500 to percentage deductibles.

What are percentage deductibles?

Now, what are percentage deductibles you ask, well as the name entails it is a percentage of your Dwelling cost or coverage A on your home.  For example, I am working with a client who has a 2% wind and hail deductible on his policy with another agent, and the coverage A for his home is $500,000.  To put that into perspective, his Wind/Hail deductible is $10,000! When I alerted him to this, he did not realize it because his agent did not explain what the percentage would be of, the dwelling coverage of his home.

What You can do:

For most companies, the standard wind/hail deductible is $2,500, with a few companies able to write a lower deductible. My advice as an agent is to check your policies and make sure you are not in for a big surprise after a storm. If you have any questions or would like a quote please give me a call or email me I would be more than to help.