Most people have heard about premiums, deductibles, and limits, but not everyone truly understands them. What do these terms mean, and how do they impact your finances? Just Protect Insurance is here to help you understand these terms.
What is an Insurance Premium?
To keep your insurance policy in place, you need to pay an insurance premium. Insurance premiums are paid monthly, quarterly, or annually depending upon your insurance policy. Some companies offer discounts for individuals paying up-front compared to those paying monthly. If you fail to pay your premium, you will lose insurance coverage. Insurance premiums vary based on several factors, including;
Homes age and condition
Discounts for anti-theft and reduced risk protection (fire protection, etc.)
Call your insurance provider immediately to check for homeowners discounts. You may be surprised to learn about some available discounts and can save you hundreds of dollars annually.
What is an Insurance Deductible?
Insurance deductibles are the amount of money you pay toward a covered claim. Let’s say you have a $1,000 deductible. When you file a claim for a new roof due to wind damage, you will need to pay the $1,000 to the insurance company so they can start working on arranging repairs for the damage. Each time you make a new claim, you will need to pay the deductible.
What is an Insurance Limit?
Insurance limits are designed to cap how much an insurer will pay towards covered claims. When you have a higher coverage limit, you will have higher premiums. Every insurance provider has certain limitations on policy coverage. Homeowner’s insurance policies have different limits as some people increase coverage limits to include dwelling coverage, personal property coverage, and liability coverage. Look at the other coverage limits and plans to find the one that does meet your needs.
Review your insurance coverage policies annually to ensure you are getting the best rates, coverage, and right insurance. Just Protect Insurance reviews policies often, and we compare rates to find providers offering the best insurance coverage options. Check back often to read about new tips, industry news, and insurance savings options.