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Personal Finance (Not Investing) • Stated Deductible v. Actual Deductible (Home Insurance)

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What if your stated deductible was $30.000? Then you wouldn’t claim if the cost was $30,001?

Why not use a stated deductible such that the extra dollar wouldn’t change your claiming strategy?
If the stated deductible was $30,000, no, I wouldn’t file a claim if the cost was $30,001 because I’d only get $1 from the insurance company but get dinged for making a claim and my rates would likely increase.

To make filing a claim worthwhile, wouldn’t you want to get more from the insurance company than what your share of the claim is?

As for setting a deductible such that an extra $1 wouldn’t change the claim strategy, I think that would result in not having any insurance at all, because even if the deductible was $400k on a $500k house, I’d probably never put in a claim then.
Like oldfatguy, I don’t understand your reasoning.

Why would I care how much the insurance company is paying out on my claim?

The point of homeowner’s insurance is to limit my potential loss.

Statistics: Posted by delamer — Thu Aug 01, 2024 3:24 pm — Replies 13 — Views 418



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