As insurance premiums continue to rise more and more consumers are selecting higher deductibles on their personal insurance programs in order to realize savings. Does this surprise you?
This same phenomenon has been going on over the past several years with insured’s as they elect their personal health insurance plans in the individual market or through their employer group. As premiums increased, so did the likelihood of selecting higher deductibles to reduce annual costs … FACT: Raising your Homeowner’s Insurance deductible will lower your annual cost…
Raise your deductible and bank the savings for a rainy day. If you can afford a $10,000 deductible and the replacement cost on your home is $1,500,000 or greater, the savings could be > $1,000 annually. Why hand this over to the insurance carrier IF you can afford the loss? Think about the last time you had a property loss at your home. Most families will go more than 5 years without a loss. That’s at least a $5,000 cumulative savings. I am sure you could find a better use for that money.
In the event of a property loss, engage qualified, recommended, insured contractors…
Higher homeowners deductibles will force consumers to pay more “out of pocket” and the temptation to hire the cheapest bid
This may be the most costly option. Know whom you are hiring and allowing on your property. Check references. Verify they have the appropriate insurance for the job. Employ contractors by written contract to protect your interests.
Be informed.
Managing your personal exposure to risk and overall long-term insurance costs are well within your reach by exploring your options and making informed consumer-driven decisions.
Written by Eric P. Ferraris, CIC, CRM, CLTC, Chief Operating Officer of Tooher-Ferraris Insurance Group, a family owned and operated property & casualty independent insurance agency in business since 1932. Eric is focused on delivering tailored insurance and risk management programs backed by superior service. He works with business owners and high net worth families to reduce their exposure to loss. Connect with him on LinkedIn or the firm on Facebook. Call Eric for a review of your insurance needs @ 800-899-0093 or email him to start a conversation at eferraris@toofer.com.
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