Understanding Hail Damage Deductible
A deductible means a homeowner needs to pay a certain amount for the repairs before their insurance provides pays for the claim. If the policy stated a $700 deductible, it means that the homeowner needs to pay $700. The insurance provider will then shoulder for the remaining amount of the claim.
According to the nonprofit Insurance Information Institute, the combined wind and hail claims served as the largest share of home insurance from 2007 to 2011. For this reason, many insurance providers are adding a new deductible to their basic policies. Homeowners need to pay for the new deductible before their insurance provider can cover for the claim any time their home suffered hail damage.
However, many insurance companies are looking into reducing the deductible cost and make their policies more affordable for the public.
A common sight
Insurance deductible was a common rule after Hurricane Katrina hit a part of the US in 2005. Many insurance companies on the East Coast and Gulf Coast region put deductibles on their policies. Because of the catastrophe insurance companies based their deductibles on that notion.
Some insurance policy may require homeowners to pay a flat-rate of $1000 to $2000 per hail claim. But, most insurance companies ask the homeowners to pay for a typical percentage of 1 to 5 of their total insurance coverage. For example, a $200,000 insurance coverage equates to $2000 deductible of 1%.
Are deductibles a bad thing?
Insurance companies need to include deductibles in their policy to accommodate the cost related to hail damage. However, in many instances, the homeowners may suffer. In storm-prone regions, it is becoming difficult to avoid insurance policies that have deductibles. To lower down the cost of a standard policy, some insurance companies do not cover for wind damage.
However, some states create funds that will cover homeowners for wind damage who cannot get coverage. There are several insurance companies that still offer wind coverage but it can be expensive.
How you can deal with hail damage deductible
Before getting a homeowners insurance policy, there are certain things you can try to get the most out of it.
# 1. Read and understand the policy coverage.
Research is the best tool you can have in getting the best deals with insurance coverage. Read the policy thoroughly and be meticulous on deductibles.
# 2. Ask the agent
Ask questions about what the policy can and cannot cover. But do not expect them to divulge everything about the deductibles. Bring out the detective skills in you in asking the highlights and some of the nuances of the policy. Write down the advantages and disadvantages of every insurance company prospects. It will then be easy for you to decide which insurance has the best offer for your specific needs.
# 3 Save for the inevitable
Make sure you still set aside a budget for any major catastrophic event. No one really knows when Mother Nature will strikes again, so it still best to have money not just for any major house repairs but for your family as well.