To save money on home insurance premiums, try raising the deductible on the home insurance policy – but carefully consider if there is enough money saved before doing so.
“The bottom line is that you want to make sure you are comfortable with the deductible amount you’ve selected,” says Stacy Molinari, personal lines and claims manager of Insurance Marketing Agencies, Inc. “And that means you need to make sure you have enough of a financial cushion to cover the deductible. Otherwise it could cost you more in the long run.”
The study found that for the average nationwide home insurance premium of $1,034, raising the deductible from $500 to $1,000 could amount to a 7 percent in savings. Raising the deductible from $500 to $2,000 could result in a 16 percent savings, and an increase from $500 to $5,000 could net a 28 percent savings.