Trying to save for that dream vacation but just don’t know where to find the extra cash? Or maybe you’re having trouble paying your car loan? One of many ways you may be able to save some cash is by raising your deductible on your California home insurance and even on other policies.
Your deductible is the value of the loss that you must bear before your insurer pays you for a claim. In other words, a loss that is less than your deductible would be your responsibility. These days, most insurers will recommend a deductible of at least $500, but that figure can be negotiated.
In most cases the lower your deductible, the more you will have to pay on your premium every year. However, on the flip side, the higher your deductible, the more you can save on your premium. Raising your deductible from the standard $500 to $1,000 can often result in a huge saving on your premium, sometimes as much as 25 percent. The higher you go from there, the more money you can save yourself each year.
Of course, there are some exceptions, especially for those living in disaster prone areas like California. In these cases your insurance policy may have a separate deductible in place for events such as earthquakes.
There are many ways to save money through your California home insurance and raising your deductible is one of them. It’s a great way to improve your cash flow, while still ensuring your home is safely insured in the event of a major disaster.
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