Homeowners protect their homes by taking out homeowners' insurance. When choosing a home insurance policy, always consider the deductibles. Here is a look at pointers on selecting the homeowners' insurance deductible that will work for you.

Understanding Flat Dollar and Percentage Deductibles

Many homeowners pay the flat dollar deductible. The flat dollar deductible is a fixed-dollar amount that one settles out of their pocket when filing a claim for a property damage loss. This deductible usually ranges from $500-$2,000. 

Percentage deductibles apply to specific risks like wind, hurricanes, and storms. These deductibles consider your home's insured value. For instance, if you insure your house for $200,000 and your policy comes with a 1% deductible, $2,000 will be deducted from the insurance claim amount. Percentage deductibles apply to you if you live in a neighborhood with a high risk of wind or hurricane damage.

The Long-Term Cost of Your Policy

When determining the right insurance deductible, balance the amount you can afford now and the monthly premiums. A high deductible means you will pay low premiums. This is a good plan for you if you can handle high costs at a moment's notice.

Conversely, a low deductible means you will pay high premiums. This means you will avoid expensive out-of-pocket expenses. A low deductible plan is best suited for you if you do not have savings or are financially unable to pay for high costs during emergencies. 

Your Potential for Filing a Claim

When choosing a homeowners insurance deductible, you need to determine what kind of homeowner you are. Proactive homeowners constantly perform home repairs and maintenance. Being proactive means you are less likely to suffer damages and report claims unless it's from situations you can't control. 

Some homeowners wait until there is a problem. These types of homeowners are less concerned about preventative measures; hence, their potential to suffer from property damage is high. This means they could file more claims than proactive homeowners. A high deductible is best suited for a proactive homeowner, while a low deductible will work for the less careful homeowner.

How Your Insurance Provider Deals with Deductibles

Some insurance providers require you to pay the deductible upfront. This means when you file a claim, have cash in hand for the deductible before the insurer pays the rest. Therefore, if you cannot pay for a large deductible, you should not consider this arrangement. It is better to go with an insurance provider that takes the deductible from the total claim compensation.

For more info, contact an insurance company like Kyle Insurance group LLC.