A higher insurance deductible reduces the amount of coverage provided by homeowner's insurance,and therefore results in a lower insurance premium.

Question

Quizplus · Accepted Answer

A higher insurance deductible means that the homeowner will pay more out of pocket before the insurance coverage kicks in. This decreases the risk to the insurance company and results in a lower premium. However, it also means that the homeowner has less coverage in the event of a claim.

A Higher Insurance Deductible Reduces the Amount of Coverage Provided