Deductibles

What Are Deductibles?

What is a deductible?

A deductible is the amount of money you agreed to pay out of pocket when signing your insurance policy, it’s the money you pay before your insurance releases the rest of the restoration costs.

Why do they exist?

Deductibles are what insurances require to ensure shared responsibility between you and your insurance company when making a claim and also prevent small claims from being filed for every minor expense.

How do they work?

If you have a $1,000 deductible and your covered damage costs $5,000, you pay $1,000. Your insurance pays the remaining $4,000.

What should I know?

Choosing lower monthly premiums usually means a higher deductible, it means you’ll pay more if a claim happens. Picking the right deductible is about balancing savings with risk, always read your insurance policy carefully and ask your attorney when you don’t know something, it’s all in the detail.

Disclaimer. Non of this is legal advice, just generic information for educational purposes and to share, if you need legal advice contact your attorney.