When storm damage hits, how are you going to handle that insurance deductible?

by Stefan Holt | Jan 31, 2017

No matter where you live in the country, you can’t escape weather or mother nature. Snow, hail, earthquakes, hurricanes, harsh winds, blizzards and tornadoes — every area of the nation has its own brand of severe weather and other risks that can damage your home, your vehicle or both.

To protect your property and possessions from the unavoidable, you carry insurance. It serves as your security blanket and provides you with the financial protection you need in the event of storm damage.

This all sounds simple, but will this cover all of the costs?

One of the essential pieces of your standard insurance policy is the deductible, which is the amount of money you will have to pay out of your own pocket should you need to make a claim. It is this deductible that you must meet before your insurance policy kicks in to provide additional  support.

While insurance policies differ depending on your insurance history, where you live and the specifics of your plan, they usually share a common feature: the higher your deductible, the lower your monthly  payment.

And if you chose one of these high­deductible, lower monthly payment options, in the event of a disaster, it may mean you have to find $500­1,000 or more before your policy will kick in to help you recover from the damage.

Can you find that money? If you can't, you've left yourself vulnerable to a much larger sum of unpaid bills.

Finding the money when you need it most

Many people across the country report they would have trouble coming up with $1,000 in an emergency  situation -

 like meeting an unexpected insurance deductible. According to the The Associated Press ­NORC Center for Public Affairs Research, two­thirds of Americans report they would have trouble paying an unexpected bill 


of $1,000, and that number climbs to three ­fourths of respondents in homes with a household income of less than $50,000 per year.

Sound familiar? If so, how do you find the money you need to cover your insurance deductible after your home or car sustains storm damage? The answer is easy: a short ­term installment loan can help. Installment loans have fixed rates and predictable terms. An installment loan can provide the money needed to satisfy an insurance policy’s deductible and activate the policy's protection in order to recover from storm  damage.

And that’s good to know.

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