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Understanding Home Insurance Deductibles: An Interview with Julie Crowe of CJ & Associates Insurance

By Julie Crowe

Tell us a little bit about your company and its foundation.

We have been in business since 1987; we pride ourselves on going the extra mile. We have chosen to not specialize in any certain line of insurance; we love the challenge of juggling all lines of insurance and hard to place risk.

What are some of the services your company provides?

We write all lines of insurance such as: auto, home, business, rental homes, motorcycles, RV's, mobile homes, boats, personal watercraft, life, health, and bonds.

First off, what is the definition of a deductible?

The definition is the expected out-of-pocket expense in the event of a covered claim.

What are the two types of deductibles? Do these types ever vary across different insurance companies?

Two deductibles are fixed dollar amount or percentage of coverage A (unless noted on your policy).
Yes it varies, some companies will offer a fixed deductible for all named perils and some companies will require a separate deductible (most of the time is a percentage) for wind and hail. Best option to read your policy or ask your agent.

How are deductibles calculated? Is it more common for an insurance company to use fixed dollar amount or a percentage of my home's insured value?

Deductibles are not calculated they are selected at the time of purchase. Most companies offer both; we usually offer our customers a fixed deductible. Each situation is different, so a client may have to choose a percentage if the company does not offer a fixed deductible. The options for a percentage deductible will be something like 1%, 2% etc. You can also choose both, fixed dollars amount for all named perils except wind and hail. Again, each insurance company will offer different options.

What are the disadvantages to choosing a higher deductible? The advantages?

Disadvantage would be a higher out of pocket expense, the advantages are savings on your annual premiums and it would deter you from turning in claims that are smaller than your deductible.

What's the best way for people to get in contact with you and your company?

Always available during normal working hours by phone 770-443-1978.

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