What your deductable means to your insurance premium

I was working on a homeowners quote today. I  realized that the premium of another agents quote (that was shared with me by my new client) was extremely low. As I looked closely at my competitors quote, I realized… The reason for the premium being so low was of no service to my client. Their Wind/Hail deductable was set at 5%. Doesn’t sound like very much money, does it? I mean, after all, you probably wouldn’t be too upset at someone for eating 5% of your candy bar, would you? Ah, but 5% of a $400,000 dwelling value on a home? That is a different story, that is $20,000, and THAT isn’t chump change. The lesson here? Pay attention to the deductable on your policy. A deductable like this is one that can leave you high and dry, with a leaking roof. Watch the lines of your policy carefully, and speak to an agent that you feel you can trust. If you see a noticeable difference in the amount of one quote from all of the others you are getting, investigate. A $1,000 all perils deductable is a beautiful thing. Some companies are moving to a % based deductable, but be careful of those numbers that look so tiny in % but feel so heavy when you are hit with them.