Know what you may need to pay yourself before you choose a policy.
The essentials
A deductible is the part of a covered claim that you pay. A lower premium paired with a higher deductible may look attractive, but you need enough accessible money to meet that amount after a loss. Some policies have different deductibles for different events. A percentage deductible can work very differently from a fixed dollar amount.
Put it into practice
Write down the deductible for each type of claim and ask the insurer to show a worked example. Compare policies using the same coverage limits. If increasing the deductible saves only a small amount each year, think carefully about the extra cash you would need during an emergency.
Before you decide
Use this guide as a starting point for your own questions. Check the current terms in your documents and the rules where you live. Keep a short written record of the options you compare, the details you still need, and your next step.
This is general educational information, not personal financial, insurance, tax, or legal advice.