What is a waiver of deductible?
Even if you’ve never filed a home insurance claim before, you know that you need to pay a deductible before accessing your coverage. However, you might be surprised to learn that this isn’t always the case. There are certain situations in which you can bypass your deductible with a waiver of deductible. Here’s what you need to know about this special home insurance clause.
- What is a waiver of deductible?
A waiver of deductible is a clause in your home insurance policy that lists certain situations in which you do not need to pay your deductible to access your coverage. The “big claim” or “large loss” waiver of deductible allows you to bypass deductible payments on claims that exceed a certain dollar amount. For instance, this type of waiver kicks in for major losses, such as your home being completely destroyed by fire.
- How do I know if I have a waiver of deductible?
Waivers of deductible are common in homeowners insurance policies. You will be able to find details about your waiver in the wording of your policy. Your insurer might also offer you the opportunity to buy additional waivers. However, you need to be wary when it comes to these additional waivers. If the cost of the waiver is equal to the savings of setting a higher deductible, then taking this step isn’t really worthwhile.
- Do waivers of deductible differ depending on the company?
Yes; waivers of deductible are based on your specific insurance company. Some insurers might not offer this money-saving option at all. The companies that do offer this option will have different rules about which claims qualify for the waiver. This is why, if your policy does offer a waiver of deductible, you should speak to your insurance provider to learn about the specifics of your waiver. Understanding when your insurer will waive your deductible will help you decide when to increase your deductibles to save money on your premiums.
This is what you need to know about waivers of deductible on your homeowners insurance. Do you have additional questions about your home coverage? If so, then contact the experts at Patterson & Associates in Richardson, Texas for assistance today.