One of the values of having an agent is that you have someone to call when you have a claim. One of the first things we like to inform our clients is what the policy deductible is for the claim. The deductible on a policy is the dollar amount you pay before the insurance company pays. However, this may not be your “true” deductible; it is actually your minimum deductible! Given your financial situation or the circumstances of the loss, you might be willing to self-insure to a higher amount.
For example, let’s say you have water come in the ceiling of your home. You call your favorite handyman and he comes out and says, “I will fix that for $1500.00.” When you call your insurance agent, you find out that your policy deductible is $1000. Will you make the claim? If you decide not to make the claim, your “real” deductible is $1500.00 because of the amount you agreed to pay your handyman. Is this an interesting concept? Maybe it is time to review your policy to see what your minimum deductible is and see if you want to raise your policy deductible.
Article by: Virginia Kinneman, Agent & Agency Owner Kinneman Insurance