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Your home insurance deductible is simply the amount deducted from a covered loss. It represents a sharing of risk between the insurance company and the insured. Should an accident or disaster occur in which you must file a claim on your homeowners policy, the deductible would be the amount you have to pay out of pocket to repair the damages to your home. Your deductible usually applies each time you file an insurance claim.

The good thing about a deductible is that you have some control over the amount. A deductible may be a set dollar price, or a percentage of the total amount of your homeowners policy. The amount of your deductible typically impacts your monthly premium rates. In most cases, the higher your deductible, the lower your insurance premiums, and the lower your deductible, the higher your premiums. The most common deductible amount is currently $500. Many companies don't allow a deductible below $500. If you had a $5000 loss on your home the insurance company would pay you $4,500, $5000 - $500 deductible.

When looking to buy a new home in New Hampshire, it is important that you consult your agent to determine the cost of insuring the home. It is vital that you have the right financial protection to repair or rebuild your home in the event of a loss. Although choosing a higher deductible may help keep your premiums down, it is important to choose an amount you can afford at the time of a loss. Your agent may be a valuable resource to help you when selecting the right homeowners insurance policies and deductibles for your home needs.
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