If you file a flood insurance claim, your agent will likely talk to you about a deductible. This is your financial responsibility for flood damage that most policies include. Thus, you should be ready to pay it when it arises. Still, don’t let your deductible scare you. Let’s discuss some
of the ways you can use it to your advantage.
What is a Deductible?
Your flood insurance will pay for many of the costs to repair parts of your home damaged by flooding. It will also usually pay for many of your lost belongings. However, your insurer will still expect you to shoulder what you decide is your share of the cost burden. That’s your deductible.
Following flood damage, you’ll pay the deductible costs toward your home repairs. After you’ve paid this amount, your insurer will agree to pay for its part of the remaining costs. The amount the insurer pays will vary from case to case. That’s because they’ll look carefully at what costs they will cover in addition to the total value lost. However, the deductible is a set amount that you’ll know is your responsibility.
Deductibles in a Nutshell
When you get your insurance, you’ll often have the option to choose the amount of deductible you want to pay for a claim. Let’s say, for example, that you choose one worth $1,000.
After a flood, you call your insurance company, and they determine that you have $9,500 in property damage. You will pay the $1,000 deductible towards those repairs. Your insurer will then pay the rest of the $8,500 on the claim ($9,500 - $1,000 = $8,500). So, while the insurance company will shoulder the brunt of the claim, you’ll also pay your fair share.
The Advantage of Your Deductible
Most flood insurance deductibles will vary. Indeed, often, you’ll have separate deductibles for your property damage and possession losses. The thing is you can often set your deductible to your savings advantage.
Often, when you take a higher deductible, you’ll pay less for your coverage. That's because you’ll shift some of the cost risk away from the insurance company. As a result, they might be able to charge you less for coverage. Even so, you do have the option to choose a lower deductible that meets your financial limits. So, work to determine the rate that is a good balance for you. Keep in mind, if your total claim is less than the value of your deductible, you might not be able to receive any insurance help.
Talk to one of our agents at 855-935-1233 about your flood insurance deductible options. We can help you determine the options that best suit the value of your home, possessions and assets.
Also Read: What is the Reconstruction Cost of Your Home?