Ramsey Insurance Blog

When you are considering buying a WV homeowners insurance policy, it is important that you understand the terminology used in policy contracts. The term “deductible” refers to the amount of money that the policy-holder must pay if they lodge a claim, before the insurance company pays for losses or damage.

Deductibles can be seen as a sharing of the risk between the policy-holder and the insurer. In many policies it is set as a dollar value, such as $500 or $1,000. In other instances, especially for certain types of natural disaster, the deductible is a percentage of the value of the insured property. When deductibles are set higher, policy premiums or payments are generally lower, so if the risk of loss or damage is low, it makes sense to have higher deductibles and lower premiums. It’s also important to note that deductibles generally apply to property loss on a home policy and not to liability claims where third parties are harmed or injured.

For more information in understanding a WV homeowners insurance policy, speak to the insurance company or to a qualified insurance agent. Once you understand how home insurance works, you are in a better position to make decisions regarding choice and terms of policies to suit your own needs and requirements.

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