Do you
know what your deductible is on your home owner's insurance
policy? Do you file claims whenever a small job exceeds your
deductible?
According to a new study,
many homeowners are not utilizing their homeowner's
insurance policy correctly.
"Suppose your
deductible is $500. A baseball comes flying through your
window and it costs $700 to repair. If you file a claim,
you'd get $200 back. Would you file that claim?"
asked Michael Braun, one of four authors of the report and
assistant professor of marketing at MIT Sloan, who has a
degree in applied economics and studies consumer
decision-making.
"Some people would.
Others say, 'Well, it's a hassle to file that claim' or 'I
think my premium might go up in the future.' There are a
whole host of reasons why people might decide not to file
a claim," he said.
If this describes you,
perhaps you should think about raising your deductible.
Doing so will let you save money on your annual premium.
