Tag: deductibles

How Are Commercial Policies Rated, Deductibles Selected, and Premiums Developed?

Posted on by butlervetinsurance

Insurance companies consider a variety of factors when rating a commercial insurance policy. The rating plays a big role in determining the premiums that a business owner will have to pay towards maintaining the required insurance coverage. Commercial policies, or business owner policies typically provide small business owners with general liability coverage and protection against property damage and business interruption. The amount that a business owner has to pay in monthly, quarterly or annual payments depends on several rating factors.

Factors that are often considered by insurance companies include the type of building your business occupies, its square footage, construction type, location and availability of safety features such as fire sprinklers and fire retardants. If your commercial policy includes general liability coverage, the insurance company might consider factors such as your monthly payroll or total revenues over a specific time frame. Premiums are then calculated based on your business rating exposure and the deductibles that you select. Typically, the higher your deductibles, the lower your monthly premium.

If you are a small business owner looking for help with a commercial insurance policy for your business, please contact the insurance specialists at Stromsoe Insurance Agency, located in Murrieta, CA. 

Demystifying The Confusing World Of Home Insurance Deductibles

Posted on by butlervetinsurance

What in the world is a split deductible?

This may be one of the many questions that new homeowners have when it comes to understanding the confusing world of homeowners insurance. Deductibles and insurance rates can sometimes put people in financial hot water if they are not careful to decide the best amounts based on their finances. Let’s try to demystify deductibles so you are choosing the right one based on your home.

Basically, a deductible is what you will pay out of your own pocket when a claim is made to your insurance company. This tactic is to ensure that people don’t put in frivolous claims expecting the insurance to pay for every single one. When serious damage or theft happens to your home, your deductible is placed into paying part of the costs as the insurance company will pay for the rest.

You can choose different types of deductibles. Most homeowners pick a deductible that is a percentage of the insured value of the home. This means that if you own a $100,000 home, you could pay 2% — as your out-of-pocket deductible would be $2,000. You may also decide to choose a split deductible, where you pay varying set amounts for different hazards, such as paying $400 for fire coverage and $250 for theft coverage.

Carefully consider the amount you want to pay for your deductible. The higher the deductible, the less you will have to pay for your premiums. But don’t pay a high amount that is out of your financial means. To find out more about homeowners insurance and to receive advice about deductibles with no charge to you, please contact Stromsoe Insurance Agency at 951-600-5751.