BOSTON (MyFoxBoston.com) - If you’re looking to save hundreds, possibly even thousands of dollars, you may want to consider raising the deductible on your home insurance, especially here in Massachusetts.
A new report on insurance rates across the country reveals homeowners in Massachusetts will save the third most of any state in the country by raising the deductible from $500 to $1,000.
Consumer adviser Clark Howard takes us through the important questions you need to ask before making any changes to your policy.
Howard said he always recommends a high deductible because when it comes to home owners insurance is only use it in a catastrophic situation.
“You’ve got to figure ‘how much can we afford to pay out of pocket before our insurance policy kicks in,’” Jamie Kimbrough from the Georgia Insurance Information Service said.
If you raise your deductible to $3,500 you have to remember that you will be on the hook to pay that amount should a situation occur.
>>Learn more about adjusting your deductible here<<
Another way to save is to avoid filing claims for every little thing that happens.
“If you file enough claims those things add up and raise the cost the premiums and everything else,” Kimbrough said,
One of the easiest ways to find savings on your insurance is to maintain a good relationship with your agent.
“Your agent can really save you some money, whether it’s a deductible or changing your coverage up for things that really meet your family’s needs,” Kimbrough said.
Another option is to shop your homeowner's insurance. The more you shop, the more you save. There are huge differences from one insurer to another for your home even with the same coverages.
Here in Massachusetts, you’ll save about 13 percent if you raise your deductible from $500 to $1,000. Experts say the general rule of thumb is to set your deductible between one-half and one percent of your home’s value.
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