What Is a Single Loss Deductible Clause and How Can It Save You Money?
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Purchasing insurance can feel like a never-ending undertaking, especially for first-time homeowners. There are a variety of options to consider, from home insurance to property insurance to home appliance insurance, and each of these types of ownership coverage is essential to providing you with comprehensive protection and financial support in the event of a home emergency.
The option of bundling your insurance plans with a single company can save you time and money by providing you with consistent insurance coverage, a service discount, and the potential for a single deductible clause within your agreement.
Should you bundle your insurance?
At first consideration, bundling your insurance can seem like a no-brainer. It’s a simple way to aggregate your insurance information and ensure that you are receiving the same quality of coverage across the board. Additionally, bundling insurance plans typically leads to increased service discounts, better coordination between insurance services, and allows you to keep your most private and sensitive personal information in a limited number of hands.
In addition, bundled insurance plans contain a single loss deductible clause within the agreement, which protects you in the event of an emergency that impacts two separate sections of coverage.
What is a single loss deductible?
Single loss deductible clauses are an automatic addition to your insurance policy that ensure you only pay one deductible regardless of the overall damages occurred during an accident or emergency. (A deductible is the amount of money you must pay out of pocket before filing an insurance claim and receiving any monetary compensation from your insurance provider.)
If you have two or more separate types of insurance from the same company or have purchased a bundled insurance package, you may be entitled to a single loss deductible clause (as specified by your coverage agreement).
This means that in the event that two separate aspects of insurance are impacted by the same event, you are only responsible for one of the two deductible payments. Types of insurance include:
- Homeowner’s insurance
- Property insurance
- Home appliance insurance
- Car insurance
- Fire/Flood insurance
For example, if you accidentally hit your garage door and damage both your car and home, you will only have to pay the highest of the two deductibles, as opposed to both. This can save you thousands of dollars in an emergency and allow you to allocate your funds towards repairing any damages that occurred to your property.