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Question DetailsAsked on 5/29/2014

New home Insurance deductible is at $1000,is that amount too high? I will be living in the Las Cruces, N.M area.

What other things should I add to my home insurance list, that are not typically offered when buying an insurance policy. I will be moving to the Las Cruces NM area.

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1 Answer


Deductible reflects your ability to pay for a loss - the higher the deductible the more you pay up-front (or pay for totally out of pocket, if loss is less than deductible amount) and the lower your rate is. However, if you cannot afford the hit of a substantial deductible for every claimable loss, then you may choose to pay a higher premium in exchange for a lower deductible. Many people who are not able or willing to absorb a significant loss use $250 or $500 deductible; those with substantial liquid assets may choose $1,000-$10,000 range or even more. Deductibles less than $500 or $250 make for high premiums plus more likely to have claims, so rates will go up faster with each claim.

Check your insurance company website for brochure on additional riders available - for added coverage (or any coverage for some items) such as jewelry, furs, guns, electronics, paintings/artwork, collectibles, etc. Also there are coverages related to home businesses, household employees, certaintypes of employees exposed to liability suits like nurses teachers and policemen, etc.

For many discrete valuable items like guns, cameras, computers, musical instruments, expensive clothing or jewelry, etc - especially if taken out of the house frequently - Personal Articles Insurance (a separate but related policy) can commonly give cheaper coverage than putting on your homeowners policy, and also covers essentially ALL types of losses except intentional - even negligence, leaving out in rain, laying down and walking away from an item by accident, dropping it, etc - and typically at very low or no deductible. However, every item is individually listed by make model and serial number on the policy, so new items have to be added when bought to be covered, and old items removed when discarded or replaced to avoid paying for an item you no longer have. Basically provides MUCH more expansive coverage, and quite cheap for electronics and musical instruments that could be easily tolen or accidentlaly left behind somewhere and disappear. Typically cossts about 1/2-2% of items vallue per year, for most types of items.

For liability issues, also check out Umbrella Insurance, which provides quite cheap additional liability insurance on both your homeowners and auto insurance, provided they have certain minimum levels of coverage - typically you can get extra liability coverage for around $100/year/million $ of insurance in addition to your homeowners/auto coverage, which are required to be at certain base levels to get the Umbrella coverage. Can add a lot of peace of mind, especially when you have teenage kids.

Answered 6 years ago by LCD

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