Insuring a home can be a costly endeavor, especially in hurricane prone states such as Florida. To cut down on premiums, why not increase your deductible? Raising your deductible to $1,000 from $500 can cut your premiums by as much as 20% according to Kim Lankford of Kiplinger Magazine. Better yet, why not stash away a much larger emergency fund (which we highly suggest anyway) and increase your deductible even more?! The higher the deductible, the more you’ll save in premiums. You’d save about 47% by increasing your deductible to $10,000 and up to 53% by raising it to $25,000. Deductibles of this size are not at all uncommon in areas of Florida and California with higher than average property values. If you have owned your home for a long time or actually paid cash and have no mortgage you could even consider self-insuring. Just make sure you have compared any premium savings to the extra money at risk to ensure you are making the right move.

Stephen Osborne
Accountant
sosborne@mo-cpa.com