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Revising Homeowner's Insurance

January 8th, 2014 at 03:21 am

I need to talk with my husband first, so this idea isn't yet a done deal. I'm considering increasing the deductible on our homeowner's insurance from $1000 to $2000 or more. The savings could be over $150 per year. It's not a lot of savings, but it is money we could keep in our pocket. We do have nearly $20K in our emergency fund so I don't have any concern in meeting the deductible. Why pay more than we need to, right? Any thoughts on whether this is a good idea?

I just wrote a new post on

Text is Our Money Blog and Link is
Our Money Blog about reviewing expenses. It's likely something you all know and do anyway, but I think it is a good reminder to really look at where our money goes.

Today was a no spend day. No purchases were made online. School is on again for tomorrow. I have now completed seven days of green smoothies. Yippee!!

5 Responses to “Revising Homeowner's Insurance”

  1. beawealthywarrior Says:

    7 days here too

  2. snafu Says:

    I have a note in my planner to review our insurance polices [condo, autos] to make sure that I understand the problems associated with water damages. So much of the wording seems contradictory.

    Do you see reducing deductible as break even in 6.7 years? Have you ever had a claim? Do you know the crime and fire stats in your specific community? I think you are likely in a newer house with a well documented water table and without much risk of natural disaster.. Those would be my concerns.

  3. creditcardfree Says:

    @snafu, we would be increasing our deductible. I haven't really thought about the break even, mostly looking at not spending more money for insurance that we don't need. We are in a small town, minimal if any crime. We have only ever had one claim on a home, and that was hail damage to our roof. We could easily hand over $2K to cover part of a roof if that were to happen again. We are in tornado risk area, I could keep the lower deductible for wind damage, but increase it on other perils. I'd need to see what the savings is there.

    Thanks for your thoughts.

  4. CB in the City Says:

    I am in favor of higher deductibles when there is a healthy emergency fund. Why pay an extra $150 year after year?

  5. Looking Forward Says:

    I'd do it. Smile

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