Some insurers always require an deductible. This is often a small amount. The reason for this is that it creates a barrier to filing a claim for every minor loss under home contents insurance. Every claim—even minor ones—creates administrative work for the insurer. This costs the insurer a lot of time and, ultimately, money.
In addition, by setting a mandatory deductible, insurers hope that you’ll take extra care of your belongings. As you saw in the example, some insurers set a different deductible for certain types of claims.
In practice, this occurs, for example, in cases of theft/burglary (especially in major cities) and storms.
When applying for home contents insurance, it’s important to check the deductible amount with that specific insurer. You can always find the deductible amount on your policy statement and in the policy terms and conditions.
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Are there any home contents insurance policies without a deductible?
Some insurers offer you the option of purchasing home contents insurance without a deductible. Keep in mind, however, that the amount of the deductible always affects the premium. The lower the deductible, the higher the premium.
Is it wise to choose a high deductible for home contents insurance?
Whether it’s wise to choose a (high) deductible for your household contents insurance depends on your personal and financial situation. A high deductible isn’t automatically wise or unwise. It’s important to consider whether you can easily cover the deductible yourself, even if you file multiple claims in a year. Is this feasible, and does it outweigh the premium discount you receive with this higher deductible?
These factors can determine the cost of home contents insurance.
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