Understanding the Insurance Deductible.

8/28/2023 (Permalink)

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Home Insurance in Texas

In Texas, homeowners are not required to have Home Insurance but if you have a mortgage on your home, your mortgage company may require it.  Though it is not required, it is heavily recommended. 

What is a Deductible?

The most common reasons for a home insurance claim are wind and hail damage, water and freezing damage, fire damage, and theft. Home insurance is typically paid on a monthly basis and often for years before it is needed.   Deductibles can be a flat amount or a percent of the home value.  This can often range between $500-$2,000 or 1-2%.  The insured will pay the deductible amount, with the insurance company usually covering everything above and beyond that amount. For example, the average fire damage claim is around $80,000.  If the deductible was $2,000, the insured would pay that amount with the remaining $78,000 being paid by the insurance company.

When to Make an Insurance Claim

When an issue arises that may cause the need for water damage mitigation or fire damage restoration services, it is worth determining the cost to fix the issue before making an insurance claim.  Using the example mentioned above, if the cost to take care of the problem is below the deductible, a claim should not be made.  Often if the cost is slightly above the deductible, it may not be worth making a claim. 

Calling insurance to make a claim and not actually following through with the claim can cause what is known as a zero-dollar claim.  Though the homeowner did not officially get any monetary benefit from the insurance company, it is now on their record and typically results in an increase in the monthly insurance rates going forward.

 Who to Call for Help?

A call to a professional mitigation/restoration company like the experts at SERVPRO of Carrollton and Far North Dallas.  They can assist in surveying the damage, coming up with a plan and an estimate to help with your claim decision.