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Understanding Home Insurance Deductibles: with Andrew McCabe of McCabe Group Insurance

By Andrew McCabe

Tell us a little bit about your company and its foundation.

McCabe Group Insurance opened in 1980 and focused its efforts in providing businesses with affordable health insurance products. In the year 2000, the agency transitioned out of providing health insurance and into providing individuals with home, auto, life insurance and retirement planning products.

Representing top rated national carriers you can expect the industry's best products and pricing when working with McCabe Group Insurance. McCabe Group Insurance currently has locations in Shorewood and Bay View and has 10 licensed staff to help service their potential and current clients.

What are some of the services your company provides?

While we offer all lines of insurance we specialize in home insurance, auto insurance, life insurance and retirement planning products.

First off, what is the definition of a deductible?

The deductible is the amount of expenses a customer must pay out of pocket before an insurer will pay any claim expenses.

What are the two types of deductibles? Do these types ever vary across different insurance companies?

The two different types of deductibles are fixed dollar and percentage deductibles. The fixed dollar deductible is the most common type but each insurance company may vary with what they specifically offer and how it affects the premium.

How are deductibles calculated? Is it more common for an insurance company to use fixed dollar amount or a percentage of my home's insured value?

Insurance companies most commonly offer a fixed dollar amount deductible. The fixed dollar deductible typically start at $500 and can go as high as $10,000. If a company does offer a percentage deductible the deductible will be the specified percentage based off of the current dwelling coverage. For example if you have a 1% deductible and your dwelling coverage is 150,000 then you will have a $1,500 deductible. Typically percentage deductibles start at a .05% and can go as high as 5%.

What are the disadvantages to choosing a higher deductible?The advantages?

The disadvantage to going with a higher deductible is the unexpected need to come out of pocket with a large amount of money at the time of a claim. The advantage of choosing a higher deductible is that your premium will be lower. The higher the deductible the lower your premium.

What's the best way for people to get in contact with you and your company?

The best way to get in touch with us is by either calling 414-326-9337 or sending an email to info@autoinsurancemilwaukee.com

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