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If you’re willing to take on a little more risk, it could save you a lot more money. Most financial experts agree that increasing your Cape Coral insurance deductible on your homeowner’s policy makes good financial sense. Just to clarify, the deductible is not to be confused with your premium. Deductible – This is the dollar amount of losses or damages that you, the policyholder, pay before the insurance company starts paying – the amount that is your responsibility to pay on any claim. 

For example, let’s say you file a claim that your insurer accepts for $3,000. If your deductible is $250, the insurance company will pay $2,750.) Premium – The amount you pay to keep your policy in force. Most average Cape Coral homeowners insurance policies have an insurance deductible of $250. If you were to increase this deductible to $500, you would likely save about 10% on your premium. (This may vary slightly depending on your insurer). Here is an example of the average premium savings based on various increases in deductibles: If you increase your deductible from $250 to… 

  • $500 – you could save 10 to 12%
  • $1,000 – you could save 20 to 25%
  • $2,500 – you could save as much as 30%
  • $5,000 – you could save as much as 37%.

Now, obviously, there is a bit of risk involved. If you end up having to file a claim, you must be prepared and able to afford the higher deductible. Cape Coral Homeowner’s insurance is designed to protect the contents of your home from unforeseen damage or destruction. However, if your deductible is too high, then you could risk negating the benefits of Cape Coral insurance in the first place. 

Typically, for most people, it is worth it to have a higher deductible, as insurance is for serious losses. Paying out of pocket for relatively small claims has additional benefits to keeping your premium low. You will maintain a perfect, no-claim record, which keeps your premium from increasing. The best way to approach insurance is to only use it for major claims that you couldn’t possibly handle on your own. If you have any questions regarding your Cape Coral insurance deductible or any discounts that you could receive, contact me online or call us at (239) 210-7700 and get your free quote today.