We frequently have clients ask us if combining their home and auto policies will actually save them money. Not only can combining policies save you on your premiums, but it could also have an impact on your deductibles. In particular in the Hampton Roads market where companies frequently have a separate wind and hail or hurricane deductible that is calculated as a percentage of the dwelling coverage. For example you may have selected an all peril deductible of $1,000, but the company then issues a separate hurricane deductible of 5% of the dwelling coverage. This means that if your dwelling coverage to rebuild the home in the event of a loss is $200,000, then you would have a hurricane deductible of $10,000. This means that you cannot file a claim unless the loss resulting from hurricane damage exceeds $10,000 and you will only be covered for the amount in excess of the deductible.
In order to incentivize customers insurance carriers will frequently provide the customers a discount on the annual premiums as well as offer a reduced deductible. For instance, with a combined home and auto policy the company may offer a savings of as much as 30% on the home premiums and reduce the hurricane deductible to 1% of the dwelling coverage from the 5% on a stand alone home policy. In the previous example the hurricane deductible would now be $2,000 instead of $10,000.
Not all companies provide this discount and your agent can tell you which companies offer these types of incentives. Your best bet is to make sure that you compare all your policies at one time and then decide if it makes sense based on the savings and benefits to combine the policies under one carrier.
For questions about how multi-line policies can affect your rates and deductibles contact us at 1-855-268-3733 or email us at firstname.lastname@example.org.