Choosing a Deductible for Home Insurance in Harrisburg PA

March, 2014 by Alma Abell

Many consumers wonder what the deductible should be when buying Home Insurance Harrisburg PA from Strock Insurance Agency. The cost of homeowners insurance will depend on the deductible chosen. Consumers will have to weigh the pros and cons of choosing a lower or higher deductible. In general, most consumers will benefit from selecting a higher deductible. However, each consumer will have to make his or her own decision on what deductible to choose.

With a lower the deductible on Home Insurance Harrisburg PA, it will be easier for the consumer to file a claim. For example, a $1,500 claim for theft from a home will be covered if there is a $500 deductible. The insurance company will pay the consumer $1,000 in the claim. On the other hand, the premium for a lower deductible policy will be higher. Furthermore, the insurer may decline to renew the policy due to past claims history. Other insurers may choose to decline offering a homeowners insurance policy due to past claims history. That is why it often does not make sense to choose a low deductible for homeowners insurance. However, the deductible chosen should not exceed the maximum that is acceptable to lenders holding mortgages on the subject property.

If the consumer chooses a higher deductible, the premium will be lower. This will make it harder to file a claim when the loss or other damage is of low value. On the other hand, the consumer will not end up with a claims history due to low value claims. In essence, the consumer is using the money saved with lower premiums to self-fund smaller losses. That is why most consumers will be better off choosing a higher deductible when purchasing homeowners insurance.

When shopping for homeowners insurance, it is a good idea to shop multiple companies to get the lowest price possible. At the same time, it is a good idea to get prices at various deductible amounts. The consumer should choose the highest deductible that he or she can afford when there is a loss. That will result in the lowest premium while maintaining a deductible that is affordable for smaller losses.


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