Homeowners insurance in California, is a necessity when it comes to buying a house. In fact, most mortgage companies will not finance a real estate transaction unless you provide proof that you have the proper coverage for most if not all of the property you intend to purchase.
Over the next few weeks, Scurich Insurance Services would like to give you a few tips when it comes to purchasing homeowners insurance as well as some cost saving ideas that can actually help reduce your insurance costs.
This week we will be taking a look into how a higher deductible can save you money in the long run.
The following Article was taken from: MSN Money
“Did you know you can shave hundreds of dollars off your annual homeowners insurance bill by increasing your deductible? We don’t mean just going from $500 to $1,000. Think big. Already have a $2,500 deductible? Then think bigger. Think $100,000.
“We have clients with deductibles of $100,000 fairly routinely on $5 million homes,” says Mary Boyd, a senior vice president and the chief operating officer for ACE Private Risk Services. Some ACE clients with multiple homes and a “significant” net worth have deductibles in the millions of dollars, she says. What do they know that you don’t?
When you choose a deductible, you’re picking a number you’re willing to spend out of pocket if you suffer a loss. It should certainly cover what you think of as run-of-the-mill outlays, those incurred when calling the insurer would be more of a hassle than writing a check to the repairman. But if you’re comfortable with paying even more in the event of a loss, you can save a lot of money on premiums in the long run.
How much might you save with a higher deductible? On a house insured for $1 million with a $2,500 deductible, a homeowner could save $1,000 a year by going to a $10,000 deductible at ACE. (The premium and savings will vary depending on the house’s location and other factors.) Since the homes ACE insures statistically suffer a loss only about once every 20 years, this is a very good bet, says Boyd.”
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To avoid unpleasant surprises, it is important to work with a professional in this area. Additional questions? Ask us, we’re here to help! For additional information, no-cost advice or for your free, no-obligation insurance quote, please contact Scurich Insurance Services located in Watsonville, California today at 800-320-3666.