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Have you ever looked at your Ohio home or renters insurance and wondered what it meant when the deductible said 1%? Well we’re here to tell you!What is a 1% deductible on my Bellefontaine Ohio homeowners insurance

Typical Deductibles

Many insurance policies use a flat dollar deductible, like $500 or $1,000. Your auto insurance does. Many Ohio homeowners insurance policies do too. But a trend is starting, where instead of a flat dollar amount, a percentage is used instead. Earthquake coverage added to a homeowners insurance policy has long used a percentage deductible, typically 2 or 5 percent. The percentage is based on the total amount of coverage on your home. Or if you have an Ohio renters insurance policy, it's based on the total amount of contents you have (Coverage C). 

What the Percentage (%) Deductible Means to You

Let's say you have a 1% deductible. So if your home is insured for $200,000, then you would have a $2000 deductible in the event of a claim. (This is the amount you would be responsible for paying before the insurance kicks in.)

If your home is insured for $500,000, then you would have a $5000 deductible. Big difference! But they both would be listed as 1%.

Make Sure You Know What You're Looking At

The lesson here? Know what you're looking at. When your Ohio homeowners insurance renewal arrives, take a few minutes and review it. Your insurance company may have changed your deductible without you knowing it. They are required to send a notice of any policy changes with the renewal documents, but that's it. If you don't know what you're looking for, then contact your agent for clarification. That's why we're here- to offer professional advice and translate insurance concepts so you understand. Claim time is NOT the time to discover things have changed- and not to your advantage! 

Also important to note, if you decide to shop your insurance, you'll want to know what the quotes you're looking at mean. You may have a $500 deductible on your homeowners insurance currently, but the new quote from a different company may show a 2% deductible. If your home is $200,000, that's $4,000. That's a heck of a lot different than $500! There is NO such thing as an "apples-to-apples" home insurance quote. As you can see here, insurance companies can vary on a variety of items and you don't want to be surprised. 

What if you have two separate deductibles on your homeowners insurance policy, like one for wind & hail and one for everything else? Then you'll want to read our article- Why Does My Ohio homeowners insurance policy have two deductibles? 

Bottom Line

Deductibles can be complicated! But it’s important to know what you have and have that amount available in your emergency savings in case of a major claim. If you’re unsure how to read your policy or have further questions about Ohio homeowners insurance deductible options, give us a call at (937) 592-4871 and we’ll be happy to help! You can also send us a homeowners insurance quote request immediately. 
Posted 2:00 PM

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Alan Galvez Insurance
134 W. Columbus Ave.
Bellefontaine, OH 43311

 (937) 592-4871


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