Several years ago, homeowner policies had flat-rate deductibles such as, $1,000 – regardless of the home’s value. Then in the 90’s the system began to change, and deductibles were based on a percentage of the home’s value. This brings us to the question of how does this work, and does it affect raising homeowners insurance deductibles?

As an example, let’s say your home is valued at $300,000. A 1% deductible would be $3,000 and a 5% deductible would be $15,000 and continually increase as your percentage increases. As property values rise, some homeowners choose to raise the percentage and lower their premiums. This can be a risky move because if you raise your percentage, it is important to have the assets available in case something happens.

Paying your deductible is your responsibility if something happens to your home. For instance, the Northern Illinois suburbs have been experiencing some major storms lately. This means if something were to happen because of a storm you would need to have that money available to pay the deductible in order to get your home fixed.

Brazelton Insurance Group provides homeowners insurance for thousands of clients, and every policy they provide is sure to be looked over to make sure the home is covered and if any extra items need to be added due to high risks. To find out if your home has adequate insurance, contact Brazelton Insurance Group today to get your policy reviewed.