Insurance is a great product, especially if an accident or natural disaster happens.
Home Insurance keeps our bank accounts safe and gives us peace of mind if anything happens to our home, but insurance is sometimes quite complex. There are insurance premiums to consider deductibles to consider if/when filing claims, and one must factor in how insurance premiums may increase once deductibles are changed and claims are processed too. In some cases, submitting an insurance claim is worth the deductible cost and possible rise in insurance premiums because paying to fix the damages yourself can be just too costly.
However, in some cases, the damages may not be worth the deductible, and insurance premiums increase costs, so it might be better to cover out-of-pocket expenses without insurance. But what if there were options for a middle ground? Many would be interested in that extra coverage, and there are some scenarios where buying this additional “buy down coverage” makes perfect sense. Read on to learn more about buy-down coverage. This knowledge will help anyone shopping for home insurance be better equipped to know what buy-down options are available with the home insurance they are considering.
MORE ON DEDUCTIBLES: Strata Insurance & Deductibles for Condos or Townhomes Explained
Buy Down Coverage for Glass
If a window is broken in your home, one can use a home insurance claim to fix the window. However, if the policy deductible is large, it may not be worth submitting the claim, and it might be cheaper to fix the window out-of-pocket. For a small annual fee (for example, $40 or so), some insurance providers offer to cover the deductible cost – making some scenarios worth it for some people.
Buy Down Coverage for Earthquakes
We have this buy-down coverage option for earthquakes as well. As one can assume, deductibles for earthquake coverage can be pretty high, so this type of buy-down coverage can come in handy in this situation (and others).
The Bottom Line on Buy-Down Coverage
Purchasing insurance for your home is always a brilliant idea. In many cases, paying a claim deductible and higher premiums can be less expensive than fixing significant home damages out-of-pocket. However, sometimes the deductible and higher premiums are too costly to make certain damages worth the claim. That is unless you have buy-down coverage that helps with such costs such as deductibles. As a consumer, it’s important to understand insurance in full. That includes understanding buy-down coverage options as well. We hope this article has helped you better understand your options regarding home insurance. Please feel free to reach out if you have any further questions.
If you live in Alberta or British Columbia and are looking for Home Insurance, we are here to answer any questions you may have about our range of home insurance products and services. Contact our team at 1.844.544.4663 and see what makes us Harbord – The Home Insurance People™!