Understanding insurance deductibles is important for residents of Mesa, AZ, as they may one day find themselves in a situation where they need to make a homeowners claim. While the law does not require denizens of Arizona to carry homeowners insurance, their banks most likely will, and we will discuss some particulars regarding insurance deductibles in this article.
What is a Deductible?
In the event of a disaster where you suffer loss to your home or property, you will call your homeowners insurance to make a claim. The insurance company will subtract a certain predetermined amount from the amount they decide to pay you, and this is called your deductible. In most cases, you will not need to pay this amount to the company, as it will automatically come out of your settlement.
If damages to your property are less than this deductible amount, you will be responsible for covering the entire loss. Also, you will have a deductible due for every claim even if they occur in the same policy period. Raising your deductible amount will lower your monthly premium price.
Three Types of Deductible
Your deductible can be a fixed dollar amount, and this is referred to as a flat deductible. You can also have a split deductible for each cause of loss. For example, if the damages were caused by wind and hail, you might have a separate deductible for each. A percentage deductible will simply be a certain percentage of the value of your home.
Lifetime Investments Can Lend a Hand
Lifetime Investments has been serving the Mesa, AZ area, providing its residents with quality insurance products that include commercial, auto and homeowners insurance. We can find a solution to your homeowners insurance needs, and we welcome you to call or to visit us at our office location to discuss all your requirement.