Homeowners insurance policies, like almost all insurance policies, typically have deductibles. A deductible is an amount that policyholders are expected to pay before an insurer will pay on a valid claim.. Even if you think you know, you should double-check your policy to see make sure you know precisely how much you’ll have to pay if something ever happens to your Barre, Vermont home and you have to file a claim.

What is Your deductible With Your Homeowners Insurance Policy in Barre?

Homeowners Sometimes Don’t Know Their Policies’ Deductibles

Even though policyholders are able to select their policy’s deductibles when they’re purchasing homeowners insurance, homeowners sometimes don’t actually know what their policy’s deductibles are. Some forget, especially if they don’t closely review their policy each year when renewing it. Others notice one deductible but don’t realize that homeowners policies can actually have different deductibles.

While easily made, both of these mistakes can be devastating if you ever need to file a claim on your homeowners policy. If you’re misinformed, your deductible could be hundreds, or thousands, of dollars higher than you expect. There are two items to pay particular attention to:

Homeowners Insurance Policies Can Have Multiple Deductibles

First, as mentioned, homeowners policies can have more than one deductible. A policy might have different deductibles for different coverages, or it may have different deductibles for different perils. A policy that has different deductibles for different coverages, for example, might have one deductible for personal property coverage and another for structural coverage. A policy that has different deductibles for different perils may have one deductible for wind damage and other for fire damage. In some cases, policies can have a number of deductibles, and the difference between them can be significant.

Homeowners Policies Can Have Percentage-Based Deductibles

Second, some homeowners policies have percentage-based deductibles, rather than flat-rate deductibles. Percentage-based deductibles require the homeowner to pay a percentage of the valid claim before the insurer pays the rest. For instance, a homeowner might have to pay 3 percent of the claim that they submit, and the insurance company will then pay 97 percent (assuming the claim is covered).

Even if the percentage is small, a percentage-based deductible can be large. For instance, a 3-percent deductible on a $60,000 claim (which isn’t unreasonable if a home’s badly damaged) would be $1,800. If a home in Barre was worth $250,000 and completely destroyed, the deductible would be $7,500. If the home was worth $500,000, the deductible would be $15,000.

Check You Policy’s Deductible(s) with a Barre Agent

With multiple and percentage-based deductibles, it’s not surprising that some homeowners in don’t actually know how much their homeowners’ policy’s deductible(s) are. It can be difficult to keep track of them.

With the help of an insurance agent, though, you can easily find out exactly what each of your homeowners policy’s deductibles are. Insurance agents are well-versed in insurance policies. They can break down your policy into simple terms for you and explain all of your policy’s nuances. To get help from an agent who can review your homeowners insurance policy, contact a friendly independent agent in Barre, VT!