How Do I Choose the Right Deductible for My Home Insurance?

Use this guide to pick the right deductible when buying home insurance.

Your home insurance will be there for you after a disaster, but it wonâ't immediately kick in. Before your coverage can go to work, youâ'll first need to pay a deductible. Not sure what kind of deductible to choose when buying home insurance? This guide can help. It might seem like you should pick the lowest possible deductible. After all, that would mean you donâ't have to pay very much after a disaster! But a lower deductible means higher monthly premiums. Choosing the right deductible is a balancing act of how much you can pay as a one-time expense and how much you can pay for your monthly premiums. Answer these questions to help yourself decide on the right deductible.

• Whatâ's the standard insurance deductible in my area? Ask your agent which deductible most people choose. This can give you a good baseline to start calculating your own.
• How much do I have in savings? If your emergency fund is healthy, it might be smart to set a higher deductible and rake in monthly savings. If, however, your savings account isnâ't quite where youâ'd like it, itâ's worth paying a little more each month to choose a lower deductible you know you can comfortably cover.
• Am I good at saving? If you have the self-discipline to put away money each month, you could opt for a higher deductible policy, then put the money you save on lower premiums into a savings account designed to cover that deductible. Just remember that a disaster could strike at any time, even the week after you get your policy. Donâ't choose a deductible you couldnâ't cover right away!

Would you like to consult with an expert when deciding on your deductible? For professional guidance towards the right home insurance, contact Cook, Disharoon & Greathouse, Inc. We serve homeowners in Oakland, California and are here for you!