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Understanding Home Insurance Deductibles: An Interview with David Wilcox of Wilcox Family Insurance

By David Wilcox

Tell us a little bit about your company and its foundation.

Wilcox Family Insurance - FED USA specializes in homeowners insurance. Family owned and operated, we are a proud member of "Trusted Choice". With over 30 years of experience and over 100 companies to choose from, we can usually find the best coverage and the lowest price. We write policies thru out Florida and work with many of the top Realtors and Mortgage Brokers.

What are some of the services your company provides?

We treat you like family, is not just our motto, it's how we think. We are happy to spend the time to help explain coverage's and go over everything with you. By having most of the companies, we can tailor design coverage to match any budget. We get quotes from all the companies to find the lowest price, then go over coverage's to see which carrier is the best fit. We bind coverage and take care of everything with the mortgage broker. We review all of our existing customers' policies to make sure that their company is still the best, and that their coverage is up to date.

First off, what is the definition of a deductible?

The deductible is the amount that the insured pays before the insurance company pays the remainder of the covered loss, up to the policy limits. A complete insurance glossary can be found on our web site; fedusainsurance.net.

What are the two types of deductibles? Do these types ever vary across different insurance companies?

In Florida, homeowners and dwelling policies have two separate deductibles. The WIND deductible is applied when the claim is the result of a hurricane or tropical storm. This is customarily 2% of the dwelling coverage A (which should be the replacement cost of the dwelling), but can be increased or decreased with some companies (5% & 10%).

The other deductible is the AOP (all other perils) deductible. This covers just about everything else, with the exception of flood (which is a separate policy). The AOP deductible options are usually $500, $1,000 & $2,500. Some companies will offer higher deductible options ($5,000 & $10,000). Just remember, if you have a mortgage, check with them to see how large of a deductible they will allow.

What are the disadvantages to choosing a higher deductible? The advantages?

The larger the deductible the larger the premium savings. If you can afford a larger deductible and as long as it is acceptable with the lender, a larger deductible option is in play. Choosing the rite deductible is a personal choice. Some people are risk takers and do not mind risking a larger out of pocket in the eventuality of a claim for a lower annual premium. Other people are more conservative and like to play it closer to the vest. They would rather pay a little more premium, and have a smaller out of pocket exposure and more peace of mind.

The reality is, no one has a crystal ball. We don't know if we're going to have a claim. If you choose a larger deductible and nothing happens, you saved some money. If you chose the larger deductible and something did happen, you chose wrong. Ultimately, you have to feel comfortable with your added exposure. Some companies have a large savings with the larger deductibles, others have modest savings. One needs to weigh the savings vs. the added exposure. We take the time to go over this and all of the other options in detail.

What's the best way for people to get in contact with you and your company?

Give us a call (239) 337-7755. My personal email is fedusaftmyers@netscape.net, Web Site: fedusainsurance.net.

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1/17/2015

Matthew Mondelli

Fed USA is a GREAT company. David Wilcox and all the associates are helpful and unlike many insurance offices, they're actually nice.
I have my auto and home through them. Never been easier.

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About The Author

David Wilcox is the owner and manager of Wilcox Family Insurance.

Phone: 239-337-7755

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