The deductibles represent the money that will have to pay by yourself as part of some insurance policy. For example, in case that there was a flood in your area and the cost of repair of your home is $10,000, the 10% deductible in the policy means that the insurance company will cover your expenses with $9,000.
The common mistake people are making is that they often choose higher deductibles in policies because the premiums are then lower. However, if you live in an area with a higher chance of various natural disasters, you should choose the policy with the lowest possible deductible percentage.
On the other hand, you should always make a proper calculation to determine which option is the best. Also, the insurance company might have different terms depending on the state. Therefore, in some cases may be the best option is to go for a higher deductible, especially for cheaper houses or vehicles. The main reason is that some insurance companies might require higher fees.
The most common types are percentage and flat option. When it comes to the flat deductible, it represents the amount of money determined in advance, and it is not related to the value of your property. In that case, any sort of damage will be recovered by the insurance company, but you will need to pay a fixed amount by yourself.
On the other side, the percentage option is much more popular, and companies are calculating it by adding a deductible percentage. For instance, if your house is valued and insured for $200,000, and the percentage of the deductible is 2%, you will have to pay $4,000, while the rest will be covered by the insurance.
A lot of people find it complicated when it comes to selecting the best option. The best way is to consider various factors like the chance of fires, earthquakes, floods, hurricanes, and more. If you live in such an area, we suggest you select the more expensive option with a lower percentage.
On the other side, people who live in states with minor chances of any disasters should choose the more affordable option. Moreover, we have to mention that in the case that the damage on your property is lower than the amount of deductible, you are not eligible to file any claim to the insurance company.
Main Advantages of Home Deductible App
Since many people are having issues with the proper selection of these terms, it is essential to learn more about various insurance companies and their policies. Therefore, it is critical to know an app like Fund My Deductible to solve your complicated deductible problem. In this article, we are going to introduce you to the main reasons for using an app for calculating the Homeowner deductibles.
It is Convenient
The great advantage of this app is that both contractors and homeowners can use it for calculating their fees in case of some damage. It can help the insurer to avoid any disagreements with the homeowner in case that he wants to claim more money or ask for a lower deductible. The owner of the property can easily find information about a certain situation or contact the insurer. Modern apps have installed the chat-bot feature and you can get your answers in a couple of minutes.
You Can Select the Right Deductible
As we already mentioned, it is not so easy to choose between various terms when it comes to an insurance policy, and you should pay attention to various factors that could affect the effectiveness of such insurance. Companies are using different strategies to attract more clients, but you should know that they might promote some terms as a great deal, while it might cost you much more over time. For instance, if you have a high-quality home that won’t require an expensive repair in case of a hurricane or flooding, you should opt for a more affordable choice where your deductible will be higher.
Research the Market
Another advantage of an app is that you can use it to compare the deals from different insurance companies and find the most affordable solution. For example, one company might offer you a significantly lower deductible for the same fees. Some of them might even offer you to cover each repair over a year with the same policy. That can be very important for people living in areas like Florida or Texas, where hurricanes and tornados are not so rare.
Saves a lot of Time
When it comes to modern apps, the great thing is that you can file a claim or choose the right policy online, without the need to visit an agent in public. However, you will have to collect the documentation but you can find all of the requirements online.
It Can Save You from Fraud
The big issue is that there is an expansion of insurance companies that are offering various terms that might seem attractive to people who are not familiar with the whole process. Therefore, an app can help you to find a reliable option instead of making a mistake that could cost you a lot of money. The most common fraud is the case where the contractors might try to deny the deductible by trying to scam the insurance company about the amount of money required for the repair.
Last Words
As you can see, there are various factors to consider before choosing the contractor and the insurance policy. However, an app represents an excellent solution that can help you to research the market and connect with the most reliable companies. Also, you can use it to calculate the percentage that you want to determine as a deductible amount.
You should look for those companies where you could get a discount on your premiums. For example, upgrading the house with smoke detectors, new windows, or some energy-efficient devices, there is a high chance of getting a discount. We hope you will find this article of ours useful and that it will have an influence on your future decision.
