It’s that time again for us to explore the interesting world of insurance! In this installment of our ongoing series, our resident expert, Whit Harris, will give you the rundown on what a deductible is and how they work.
Here is a quick recap!
What is a deductible?
After a loss, this is the amount of money you will pay before the insurance company participates. For Auto Policies, you have a comprehensive (or “other-than-collision”) and a collision deductible. For Property Policies, you have a Hurricane deductible (usually a percentage of your Coverage A amount) as well as an All Other Peril Deductible (AOP).
How does it work?
Let’s say you have a loss of $1000 and your deductible is $200. The insurance company will pay $800 and the insured is responsible for the $200 payment.
Am I paying too much or too little when a loss occurs?
Since every policy is different, especially in different insurance categories, the deductible values will vary based on the type coverage, the insurer, and how much you will pay in premiums.
A rule of thumb when researching your plan and deductible structure is:
1) If a policy comes with a high deductible, typically you will be paying lower premiums every month. This is because you will be responsible for paying more up-front costs before the coverage starts.
2) If a policy has higher premiums, this usually will yield lower deductibles for the insured. In these cases, the insurance plan kicks in quicker when covering a loss.
Have you heard about our Hurricane Buy Back Option?
With premiums increasing throughout the state, many have started increasing their deductibles on their property insurance to get discounts applied to their premium. Harris Insurance is excited to exclusively offer a NEW option to Florida residents, a form-following policy that can be added on to ANY property insurance policy. Our Hurricane Buy Back Policy will pay you your deductible amount in the event that you have a covered Hurricane or Named Storm claim. We can provide you with a Hurricane Deductible Buy Back Quote Quickly and Easily. Just email a copy of your declaration page to service@harrisinsurance.com!
Do you have a question you’d like answered? Check out our FAQ page, scroll down to the in-site form and ask away! We can’t wait to answer your questions and help you navigate the complicated yet necessary world of insurance.
Call us at 850.244.2111 or email at service@harrisinsurance.com if you need additional insurance information
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LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
