Last month, we talked about car insurance deductibles (Know your deductible). But did you know that the same concept applies to your house insurance?
By increasing our house insurance deductible from $500 to $1,000, our monthly premium has gone down $26. Now, I’ll be the first to admit that those savings seem negligible, but considering that we’re even less likely to make house insurance claims (haven’t made one yet!) than car insurance claims, it’s a no-brainer that we’ll come out ahead over the long run with a higher deductible.
Even at a measly $26/month, we’ll save $500 (the difference between a $500 & $1,000 deductible) in 20 months, so as long as we don’t make house insurance claims every 2 years (not gonna happen!), we’ll keep piling on the savings!!
And again… before you go increasing your deductible, keep in mind that in the event of a claim, you’ll need to come up with a larger amount of cash all at once. The last thing you want to do is incur debt to pay that deductible, so if you think you might have a hard time coming up with $1,000 (or $500 or whatever your deductible is) unexpectedly, make sure you funnel some of those initial monthly savings into an emergency account to cover this situation!