Amanda was shopping for her first home insurance and wanted to get good coverage while saving money.
Their broker gave them three options from different insurance companies.
Each had the same annual cost, but the terms of the policy were different:
All of the companies offered the same price for an open perils (all risk) policy, but it became clear that Amanda would get more money in the event of a claim if they took the policy with the lowest waiver of deductible.
In addition, Amanda realized that selecting Option 3 would result in a claim costing thousands of dollars when she inquired about the large loss deductible waiver clause.
Always inquire about the policy’s large loss waiver of deductible because this information can significantly affect a claim payout.
In this model, Amanda’s choice to go with choice would get them $5,000 more in a huge case on the grounds that when harm in a case surpasses $5,000 the deductible would be deferred.
In option , the deductible would only be waived after a loss of $10,000 in the event of a large claim.
