What is a Deductible?

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.

3 Common Mistakes Car Owners Make When Purchasing Auto Insurance

Many people find shopping for car insurance a confusing and trying process. Working with a reputable insurer, however, can simplify your efforts. At Lifetime Investments, Mesa, AZ, we can help you find the coverage you need at a price you can afford. Working with a professional agent will also help you avoid making these and other costly mistakes when purchasing an auto insurance policy.

Not Understanding Types of Coverage  

It’s difficult to shop for car insurance if you don’t understand the different types of coverage. Your lack of knowledge concerning auto insurance options could work against you in getting the protection you need. By taking time to become familiar with coverage options and what they have to offer, you can make wise decisions in selecting a policy. As an Arizona resident, you should also know the minimum requirements for car insurance in your state so you can comply with them in your policy.

Not Shopping for Good Prices

Insurance companies vary in the coverage they offer, services they provide and policy costs. For this reason, it’s to your advantage to shop around and compare what insurers in your area have to offer. Be leery of selecting a policy only for its price. Cheap insurance from an inferior insurance company could cost you more in the long run if your insurer doesn’t honor your claims.  

Miscalculating Insurance Needs

Many car owners miscalculate their insurance needs and wind up with insufficient liability or property damage coverage to protect their interests. With the help of a qualified agent from Lifetime Investments, you can learn how to make an accurate insurance assessment for a customized policy that meets your specific needs.  

To get a quote for a customized auto insurance policy that’s just right for you, contact us at Lifetime Investments, Mesa, AZ.