Saving money on home insurance is a goal you may have. But, it is rarely simple to find the least expensive policy for you. One way to reduce costs in high-risk areas is to have a separate deductible for disaster damage. In areas where there is the risk of flooding, hurricanes, or
earthquakes, this can be essential. What should you know?
What Your Basic Policy Covers
Most home insurance policies provide coverage for wind and hail damage. They can help clean up your tree that blows onto your home during a storm. Most do not cover flooding, however. Most do not cover hurricanes in some areas either. And, earthquakes in high-risk areas also lack coverage. But, you still need protection.
If you live in these areas, you may need to purchase a separate policy to protect against these types of losses. And, when you do, you separate your deductible for each policy.
Hurricane Risks
A good example of this is a separate deductible for hurricane damage. If you live in an area where hurricanes are possible, such as along the Gulf Coast, having a hurricane policy in place matters. But, a separate deductible only applies when the damage occurs from a trigger. In most cases, this occurs when the National Weather Service issues a tropical storm or hurricane watch or warning. Only when these types of warnings occur will the higher disaster deductible apply.
For example, if a storm occurs and causes you to lose the roof on your garage, but no tropical storm warning occurred, your lower deductible applies on your standard home insurance policy. If there was a storm warning, you must pay the higher deductible first before the claim covers the remaining coverage.
Hurricanes are just one example. You may be able to do the same with earthquakes and flooding in some areas. This depends on when and if your insurance company offers separate deductibles for disasters. If this is an option, and you live in a high-risk area, may be ideal to invest in it.
There is no doubt you want the protection you need for your home. But home insurance costs do not have to be out of line with your budget. With the right coverage, you can breathe a sigh of relief no matter what type of storm blows into your area.
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