If you own a house, you probably know you need insurance, but do you know what a deductible actually does? A deductible is the chunk of money you agree to pay out of pocket before your insurer steps in. The higher the deductible, the lower your monthly premium – and vice‑versa. It’s a trade‑off that can save you cash if you pick the right amount.
Across the UK, most homeowners choose a deductible between £250 and £500. Insurers like this range because it balances affordability with a reasonable amount you can cover in an emergency. Some policies even start at £100, but those usually come with higher premiums. If you’re comfortable setting aside a few hundred pounds when something happens, a £250‑£500 deductible is a solid default.
Every £100 you raise your deductible typically drops your premium by about 5‑10%. For example, moving from a £250 to a £500 deductible could shave £30‑£50 off your yearly payment. That sounds great until you actually need to claim – then you’ll pay that £500 before the insurer covers the rest.
To decide, ask yourself two questions:
If you have a savings buffer, leaning toward a higher deductible can be a smart way to lower costs. If cash flow is tight or you live in a flood‑prone area, stick with the lower end.
Another tip: check if your policy lets you change the deductible later. Some insurers allow a switch once a year without penalty, giving you flexibility if your financial situation changes.
Don’t forget to review the deductible for specific coverages, like wind or water damage. Sometimes a policy has a general deductible for the whole house and separate, lower deductibles for certain perils. Knowing those details prevents surprise expenses during a claim.
Lastly, compare quotes. A £300 deductible on one insurer might cost more than a £500 deductible on another. Use a side‑by‑side comparison tool or ask your accountant to crunch the numbers.
In short, pick a deductible you can afford in an emergency, and use the savings on your premium to fund that emergency fund. It’s a simple loop that keeps you protected without overpaying.
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