Home Owner's Insurance Deductable

[ktsmama]

First a little information.... I currently have my home owner's insurance premium paid through escrow. I am also working Dave Ramsey's TMMO.

Now my question....I have a $500.00 deductible and would like to raise it to $1000.00. Do you think this is safe to do once I complete Baby Step 1 and have enough to cover the deductible if necessary?

Thanks for your input!

ETA: I just noticed my typo in my title!

[ncblazek]

Since you only have a baby emergency fund in place, I think dave would tell you to stay put until you have a fully funded emergency fund. He talks a lot about being self insured when you are financially fit, but at this point in the TMMO, its not worth the risk. Once you have a fully funded emergency fund, you can raise the deductible and a home emergency will not completely empty out your funds!

[craftypam]

I have had $1000 deductible for a long time. My dh can fix anything. The only issue I had was that my ds car got broken into and the things that were stolen out of his car were not replaced; but you also have to take into consideration how much less your premiums will be.

[Greebo]

A $1000 deductible is fine as long as you have your emergency baby fund in place to cover it should something happen.

[SewFrugal]

Yes, I'd raise your deductible to 1K. But keep funding that emergency fund.

[pinecone]

I talked with our homeowner insurance agent this summer about the difference in premium price for different deductibles. we used to have a $500 deduct. By going to a $1K deduct. our annual premium is $500 less so even if we have a claim we break even.

piney

[amypearson]

Your emergency savings is set aside to be used for NOTHING but emergencies.

But that very fund (3-6 months of expenses) can also be used to help save on insurance premiums.

Think of it this way, because the purpose of insurance is to transfer risk from us to the insurance company, having a good emergency fund allows you to assume a bit more risk by raising your deductibles and therefore lowering your premiums.




ref:quotes-center.com/best-homeowners-insurance

[khaski]

With a baby emergency fund of $1k. No. One incident, you're completely wiped out. A fully funded, or close to it, EF? Yes.