Homeowners in Florida Discover the Dangers of High Deductibles

Florida residents are attempting various strategies to reduce their property insurance costs. One of the most tried-and-true methods is to opt for higher deductibles, which could reduce your monthly premiums. But as many Florida property owners are now discovering, high deductibles can cause a multitude of issues. Many of these issues might be difficult to predict, and you might need to take action against your insurer with help from a property insurance lawyer in Fort Lauderdale.

Why Do People Choose High Deductibles? 

When choosing a property insurance policy in Florida, you may have the option to select higher deductibles. A deductible is a sum of money you’ll need to pay before your insurance “kicks in.” Deductibles should be much lower than your total insurance coverage, representing a relatively minor financial penalty for a much higher payoff.

People typically choose higher deductibles because they can reduce monthly premiums. The logic is that if you pay more later, you can pay less from month to month. In other words, the insurance company lets you shift some of the money you would have paid in premiums toward a deductible you’ll pay later. If your property is never damaged, you’ll never have to pay the higher deductible – and you’ll benefit from lower premiums.

Florida Residents Report Major Problems After Choosing High Deductibles 

But as a recent report by MSN highlights, it’s not always that simple. Some Florida residents have reported major issues after choosing higher deductibles. Although they assumed that this decision would save them money, it is actually causing some rather bizarre financial problems.

One man claims that after incurring damage to his home, his insurer estimated the repairs would cost $2,500. However, a contractor provided a much higher quote of $4,500. Because he chose a higher deductible, he now has to pay $7,200 before his insurance coverage kicks in. In this situation, it doesn’t even make sense for him to use his insurance coverage at all. The deductible is simply too high.

Could a Property Insurance Lawyer Help? 

If you believe that your insurer has inaccurately estimated the damage to your home, a property insurance lawyer might be able to help. This could be an intentional act of bad faith or even fraud. With support and assistance from a lawyer, you may be able to push back and fight for your rights more effectively.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources 

msn.com/en-us/money/personalfinance/florida-homeowners-are-being-denied-hurricane-insurance-because-of-sky-high-deductibles-1-man-says-deductible-was-7-200-on-damage-of-just-4-500-should-you-really-go-high-to-save-costs/ar-AA1EfDdo?ocid=finance-verthp-feeds

moneywise.com/insurance/home/florida-homeowners-are-being-denied-hurricane-insurance-because-of-sky-high-deductibles#:~:text=Pros%20of%20a%20higher%20deductible,money%20in%20the%20long%20run.