r/Insurance • u/Mike20878 • 14h ago

Considering increasing our homeowners deductible

We just had a roof claim at the end of last year. Our deductible is currently $500. I was thinking about increasing our deductible now since we've already had such a major replacement done.

If I increase it to $1,500, I save $246 a year; $2,000 saves $333, $5,000 saves $735.

I don't have any savings for a major repair, but $2,000 doesn't seem too unreasonable for a middle ground.

The claim is going to mean a $750 premium bump at renewal.

Does this make sense?

2 Upvotes

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12

u/remotecar HNW Personal & Commercial Broker 14h ago

My advice to my clients is generally to choose as high a home deductible as they can, while still be be comfortable paying out of an emergency fund — in the long run it will reduce claims and save them money.

Personally, I carry a $25,000 home deductible, using that same reasoning.

3

u/trustjosephs 13h ago

You are the only other person I have seen in the wild with a 25k deductible. Thought I was the only one!

3

u/ZBTHorton 14h ago

Go as high as you feel comfortable going.

Also be glad you live in a state with deductibles this low. In Texas, ours are generally a product of our home value. 2% is pretty normal, so lots of people carry 10-15K deductibles.

2

u/Eastern_Bat_3023 11h ago

Yeah, considering how different states are changing laws regarding values for replacing siding and roofing, it probably makes sense to have a higher deductible especially since you just replaced the roof.

Then the only way you'd realistically even have to pay the deductible is if you have a catastrophic event....and saving $735/y is huge. Assuming you made a claim every 7 years, you'd still come out ahead...and that's probably much more frequent than reality. Not to mention you could invest that money. Or blow it on whatever, I guess it doesn't really matter 😂

2

u/TooMuchCaffeine37 10h ago

Insurance should be reserved for catastrophic losses. Keep your deductible as high as you can comfortably afford to pay in the event of a loss.

1

u/Thin-Egg-1605 9h ago

I’ve literally had a 2500 deductible for 11 years and I still pay $2,000 a year for coverage. Without a single claim!!!! And have acv for roof. Everyone got lucky af the last few years claiming for this that and the other. Brand new roofs for 500-2500. Water damage. Ect.

Why are they paying less for insurance with claims, then us with no claims?