How Deep Are Your Pockets? Examining Changes In Deductibles

Rising insurance deductibles are reshaping how we protect our homes and property – and most people won't notice until they're filing a claim. Timothy Walters pulls back the curtain on this important trend that directly impacts your financial security.

Remember when $500 homeowners insurance deductibles were common? Those days are gone. Now, $2,500 minimum deductibles are becoming standard for most perils, with even higher thresholds – often $5,000 or percentage-based calculations – specifically for wind and hail damage. This shift isn't arbitrary; insurance companies have lost billions on weather-related claims in recent years while development has expanded into previously rural areas.

"If your pockets are like my hairline, they're probably a little bit less full than they used to be," Walters quips, highlighting how inflation compounds the challenge of higher out-of-pocket costs. The changing landscape means consumers need to approach insurance differently than in years past. Gone are the days when insurance could be "fire and forget." Now, regularly reviewing your policy details, particularly deductible amounts, is essential financial hygiene.

Higher deductibles can reduce premium costs, sometimes by hundreds of dollars annually. However, their greater significance often lies in eligibility – some properties simply cannot obtain coverage without accepting higher deductible thresholds. This reality demands greater financial preparation from homeowners, who should maintain sufficient reserves to cover their full deductible amount if disaster strikes. Whether it's homeowners, auto, or health insurance, understanding your deductible is crucial to proper protection.

Ready to review your coverage and ensure you have the right balance of protection and affordability? Call or text 423-417-2070 for a free 20-minute consultation with The Walters Agency team.

To learn more about The Walters Agency visit:
https://www.brightway.com/agencies/tn/knoxville/0237/team
The Walters Agency
7009 Asheville Hwy
Knoxville, TN 37924
423-417-2070