{"id":3124,"date":"2024-05-15T17:10:51","date_gmt":"2024-05-15T17:10:51","guid":{"rendered":"https:\/\/www.gethomeinsurancequotes.com\/blog\/?p=3124"},"modified":"2024-05-15T17:10:52","modified_gmt":"2024-05-15T17:10:52","slug":"should-i-raise-my-deductible-to-10000-to-help-offset-the-cost-of-rising-premiums","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/should-i-raise-my-deductible-to-10000-to-help-offset-the-cost-of-rising-premiums\/","title":{"rendered":"Should I raise my deductible to $10,000 to help offset the cost of rising premiums?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2024\/05\/raise-my-deductible.jpg\" alt=\"\" class=\"wp-image-3125\" srcset=\"https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2024\/05\/raise-my-deductible.jpg 1000w, https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2024\/05\/raise-my-deductible-600x400.jpg 600w, https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2024\/05\/raise-my-deductible-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<p>According to industry reports, homeowners are raising their deductibles to $5,000 to $10,000 to help offset the cost of rising premiums.\u00a0<\/p>\n\n\n\n<p>While raising a deductible into the stratosphere will absolutely lower your homeowner insurance premium, it does mean that you will have to cover your deductible amount in the event you have to make a claim on the policy.<\/p>\n\n\n\n<p>The majority of homeowners policies come with a standard deductible that ranges from $1,000 to $2,500 but many homeowners are increasing their deductible amount. A recent report from Guaranteed Rate Insurance found that the <strong>number of homeowners choosing a deductible in the standard ranges has decreased by 17% while deductibles in the $5,000 to $10,000 range have increased 49%.<\/strong><\/p>\n\n\n\n<p>Insurance premiums have been headed up in the last few years, in fact the average premium in the U.S, has gone up over 20% from 2021 to 2023, according to Insurify. Experts expect the average rate to go up another 6% pushing the average up to $2,500 which will most likely lead to more homeowners choosing larger deductibles.&nbsp;<\/p>\n\n\n\n<p>Rising homeowner insurance costs are even leading to homebuyers backing out of a home purchase once they discover the cost to insure the home.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cHomes might sit on the market for longer, prices are being forced down, and deals are falling apart,\u201d a recent Realtor.com report said. \u201cAnd it\u2019s expected to only get worse as communities continue to grapple with increasing climate risks and insurance premiums.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p>A high-deductible policy can be a risky strategy, particularly if you can\u2019t easily afford it, but it is always a better idea than going without insurance or severely underinsuring your property.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Homeowners Choosing Higher Deductibles&nbsp;<\/strong><\/h2>\n\n\n\n<p>As insurance premiums head higher due to climate change, inflation and other factors, policyholders are moving to higher deductible to lower their premiums. According to a recent Money Magazine article, data from Matic confirms policyholders are choosing higher deductibles to keep their coverage affordable.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWhat&#8217;s happening is that insurance rates are rising, consumers are under pressure, and so they&#8217;re increasing deductibles to try and combat the price increase,\u201d Lee Maliniak, chief product officer at Matic said in the recent Money article.&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>Some policyholders have found their insurance company pushing them towards a higher deductible at their renewal. While increasing your deductible can help keep more money in your pocket, it can be risky if you have to cover it after a claim.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf there is a situation where you have to make a claim, you don&#8217;t want to find yourself with a deductible so high that you can&#8217;t pay it,\u201d Maliniak said in the Money article.&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>Insurance agents <a href=\"https:\/\/www.gethomeinsurancequotes.com\/blog\/setting-your-deductibles-as-high-as-possible-is-a-moneysaver\/\">often recommend a higher deductible to customers<\/a> who have the resources to handle a higher payment in the event they have to make a claim as the savings is often worth the risk. According to Insurance.com. policyholders who move from a $500 deductible to a $2,500 deductible save an average of $500 per year.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to industry reports, homeowners are raising their deductibles to $5,000 to $10,000 to help offset the cost of rising premiums.\u00a0 While raising a deductible into the stratosphere will absolutely lower your homeowner insurance premium, it does mean that you will have to cover your deductible amount in the event you have to make a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[415,66,270,273,1036],"class_list":["post-3124","post","type-post","status-publish","format-standard","hentry","category-questions","tag-best-rates","tag-coverage","tag-deductible","tag-premiums","tag-rising-rates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Should I raise my deductible to $10,000 to help offset the cost of rising premiums? 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