Study: Savings on raised deductibles vary by state

Insurance professionals understand that a variety of factors cause homeowners insurance policies to vary from state to state. A new piece in The New York Times reveals how some of that variability affects policyholders in the amount they're responsible to pay out of pocket in the event of a total or partial loss. 

The Times cites a study by insuranceQuotes.com, which found that raising the deductible on a homeowners policy from $500 to $2,000 lowers the average premium by 16 percent nationally. However, the potential savings from making that choice vary based on geography. 

"In North Carolina, for instance, a similar increase in the deductible saves homeowners 41 percent, while homeowners in Rhode Island, Florida, Connecticut, Pennsylvania and Massachusetts would save 20 percent or more," writes Ann Carrns in the Your Money Advisor column. "In states like Indiana and Texas, however, the savings is just 6 percent — probably not enough to justify the extra financial risk that comes with a higher out-of-pocket exposure."

Homeowners need to make sure that when the unthinkable happens, they have sufficient coverage and the capacity to pay their deductible. 

Whether homeowners choose a high or a low deductible based on their capacity to cover the higher deductible and lower the cost of premiums, it's important for them to have sufficient coverage for their home.

One of the best ways to achieve this is to update their homeowners insurance valuation annually, especially when significant changes have been made to the home. Insurance professionals can rely on e2Value's streamlined replacement cost calculation tools to provide peace of mind to homeowners regarding the protection of what is often their biggest investment. Contact us today to learn more about how our suite of solutions can help meet all of your ITV and collateral value needs for residential properties within a single valuation system.