The $1000 Minimum Homeowners Deductible – coming soon to a policy you own?

North Carolina homeowners policies have long been a thorn in the side of insurance companies doing business in our state.  On the one hand, they subject the insurance company to the misery of catastrophic losses like tornadoes and hurricanes and they also risk generating large assessments to force the insurance companies to help pay for the underfunded beach plan that covers all those wonderful beach houses we have on our coast.  On the other hand, if the insurance company can’t sell you a homeowners policy, then they are not likely to be successful selling an auto insurance policy to you as well.  And for the past decade or so, personal auto insurance has been the big money maker in North Carolina.

Now a new stopgap solution is rearing its ugly head and bearing its face to NC homeowners insurance buyers.  It comes in the form of a minimum deductible requirement.  The idea started slowly, several years ago by a few companies that wanted to cull down their homeowners presence in certain higher risk portions of the state.  They began with wind and hail deductibles that were based on a percentage of the total loss.  So, if you have a 2% deductible and a $100,000 loss, then your total deductible will be $2000.   In some cases these percentages reached as high as 15%.

Recently the rumor mill indicates that one of the largest homeowner writing insurance companies in NC is considering implementing a minimum $1000 deductible on all of its policies, both new policies and renewal policies.  Of course this drastic policy change will come with an attached notice of some sort, to let the homeowner know of this change.  But the sad reality is that very few homeowners will take the time to read the notice and as such will not be aware of this new higher deductible until after they file a claim.  Then the surprise will really hurt.

What can you do about it?  Well, be sure to check your renewal policies very carefully and watch for this change.  If you find that your insurance company has forced a higher deductible on you, and if you don’t want that high of a deductible, then call your agent and see if there is another option.  We represent dozens of companies and so far, none of ours are implementing these new, higher minimum deductibles except for a few exceptions in coastal counties.

At Clinard Insurance Group, located in Winston Salem, NC, we help homeowners every day, all across our great state of North Carolina with their home and auto insurance needs.  If you find yourself forced to swallow a new $1000 deductible and you don’t want one that high, please give us a call.  Our agents will take as much time as you need to go over your home insurance in detail and help you make sure that you get the policy you want at the best possible price.  Give us a call, toll free, at 877-687-7557 or visit us on the web at