When you need home insurance in Burlington, North Carolina, you have several different things to consider before you decide what type of policy will suit you the best. You can choose to purchase a named hazards policy or an all perils policy. You can choose to buy replacement value coverage as opposed to actual cash value coverage.
One of the more important aspects of a home insurance policy that you should think about carefully before buying a policy is the size of the deductible that you wish to carry. A deductible does not apply to the liability portion of your home insurance policy. It does apply for the dwelling as well as your personal belongings within the dwelling.
A deductible is the amount of money you must pay before your insurance will pay anything on a claim. As you probably already know, the higher deductible that you set for your home insurance, the lower your premium will be. You should also know that you may have two or more different deductibles that cover separate hazards. For example, coastal North Carolina is often in the path of big storms, heavy rains and hurricanes. Your insurance carrier may have a deductible for windstorm or hurricane damage and another to cover other perils like fire or smoke damage.
While you usually have the option to set any sized deductible of your choosing, sometimes, if your mortgage holder is so inclined, they may insist that you carry a fairly low deductible such as $500 instead of say $2,000. If it happens that you set a high deductible and then suffer a loss that is below that deductible, your insurer will not pay anything for the repairs.
You should always try to pick a deductible that is not higher than the amount you feel comfortable paying if you should suffer a loss. As your independent agent, we can help you determine the proper deductible for your situation. Sometimes, it is worth paying a little higher deductible up front so, if something happens, you won’t have to reach too deeply into your own pocket to fix your home.