Understanding Homeowner’s Insurance Inspections: What to Expect and How to Prepare

Purchasing homeowner’s insurance is a crucial step in protecting your property and assets. As part of the insurance process, insurers may conduct inspections of your home to assess its condition and identify any potential risks. We’ll explore what homeowners can expect during insurance inspections, what insurers typically look for, and the potential consequences if issues are raised during the inspection.

Why Do Insurers Conduct Homeowner’s Insurance Inspections?

Homeowner’s insurance inspections serve several purposes for insurers:

  1. Risk Assessment: Insurers need to evaluate the condition of the property to assess the level of risk they are insuring. This helps them determine appropriate coverage and premiums.
  2. Loss Prevention: Inspections allow insurers to identify potential hazards or maintenance issues that could lead to future insurance claims. Addressing these issues proactively can help prevent losses and reduce the likelihood of claims.
  3. Compliance: Insurers may also conduct inspections to ensure that the property meets certain safety and construction standards required for insurance coverage.

What Do Insurers Look for During Homeowner’s Insurance Inspections?

Insurers may choose to do an exterior only inspection or an inspection which includes the inside of your home. During a homeowner’s insurance inspection, insurers may examine various aspects of your property, including:

  1. Roof Condition: Inspectors will assess the age, condition, and material of the roof to determine its risk of damage or failure.
  2. Structural Integrity: They will inspect the foundation, walls, and other structural elements for signs of damage or deterioration.
  3. Safety Hazards: Inspectors will look for potential safety hazards such as faulty wiring, plumbing leaks, or fire hazards. They will also look for issues which could increase the frequency or severity of a loss such as overhanging tree limbs or vegetation touching your home.
  4. Exterior Features: This may include the condition of siding, windows, doors, and other exterior features.
  5. Home Systems: Inspectors may check the condition and functionality of heating, cooling, plumbing, and electrical systems.
  6. Liability Exposures: Inspectors will look for safety concerns for guests as well which could include, but is not limited to, aggressive pets and availability and condition of safety railing on stairs or decks.
  7. Coverage Adequacy: Inspectors will also note measurements and construction of your home to validate that your dwelling limit seems reasonable.

Consequences of Issues Raised During Inspections

If issues are identified during the homeowner’s insurance inspection, several potential consequences may arise:

  1. Policy Non-Renewal or Cancellation: In some cases, insurers may choose not to renew or cancel a homeowner’s insurance policy if significant risks or hazards are present and not addressed.
  2. Premium Increases: Insurers may increase premiums or adjust coverage to reflect the increased risk associated with unresolved issues.
  3. Required Repairs or Upgrades: Insurers may require homeowners to address specific issues or make improvements to the property to maintain coverage.
  4. Loss of Coverage for Specific Risks: If certain hazards are not remedied, insurers may exclude coverage for related risks from the homeowner’s insurance policy.

How to Prepare for a Homeowner’s Insurance Inspection

To ensure a smooth inspection process and minimize the risk of issues being raised, homeowners can take the following steps:

  1. Address Maintenance Issues: Regular maintenance and upkeep of the property can help prevent issues from arising during inspections.
  2. Make Necessary Repairs: Address any known issues or hazards before the inspection to demonstrate proactive risk management.
  3. Provide Documentation: Keep records of any renovations, upgrades, or repairs made to the property, as this information may be useful during the inspection.
  4. Be Present During the Inspection: Being present during the inspection allows homeowners to address any questions or concerns raised by the inspector and provide additional context about the property.

Homeowner’s insurance inspections play a vital role in assessing risk, preventing losses, and maintaining coverage. By understanding what to expect during inspections, addressing any issues proactively, and preparing accordingly, homeowners can ensure a smooth inspection process and maintain adequate insurance coverage for their property.

E-Bike Insurance: Why Separate Coverage is Essential for Riders

In recent years, the popularity of e-bikes has soared, offering a convenient and eco-friendly transportation option for many. However, questions about insurance coverage have emerged, leading riders to wonder if their homeowner’s insurance policy is enough to protect their investment. Let’s delve into why insuring your e-bike through a separate policy is crucial and why relying solely on homeowner’s insurance may leave you vulnerable.

Understanding Homeowner’s Insurance Coverage for E-Bikes

Many e-bike owners assume that their homeowner’s insurance policy will cover theft, damage, or liability issues related to their bike. While homeowner’s insurance typically provides coverage for personal property and liability, there are significant limitations and exclusions that may apply to e-bikes.

Why Homeowner’s Insurance Falls Short for E-Bikes

  1. Coverage Limits: Most homeowner’s insurance policies impose limits on coverage for certain types of personal property, including bicycles. If your e-bike exceeds these limits, you may not receive adequate compensation in the event of theft or damage.
  2. Exclusions: Homeowner’s insurance policies often exclude coverage for motorized vehicles, including e-bikes. This means that damage or theft related to your e-bike’s electric motor may not be covered under your homeowner’s policy.
  3. Liability Concerns: In the event of an accident involving your e-bike, liability coverage under a homeowner’s insurance policy may be insufficient. E-bikes are considered motorized vehicles in some jurisdictions, and liability coverage for motor vehicles may not apply to e-bike accidents.

The Importance of Dedicated E-Bike Insurance

Given the limitations of homeowner’s insurance coverage, securing a separate e-bike insurance policy is essential for comprehensive protection. E-bike insurance policies are specifically tailored to address the unique risks associated with e-bike ownership, offering coverage for theft, damage, liability, and more.

Benefits of E-Bike Insurance Policies

  1. Comprehensive Coverage: E-bike insurance policies provide broader coverage for theft, damage, and liability compared to homeowner’s insurance policies, ensuring that your investment is fully protected.
  2. Customizable Options: E-bike insurance policies offer customizable coverage options tailored to your specific needs and riding habits, allowing you to select the level of coverage that best suits your requirements.
  3. Specialized Support: In the event of a claim, e-bike insurance companies offer specialized support and expertise to expedite the claims process and ensure a satisfactory outcome, providing peace of mind to riders.

Insure Your E-Bike for Peace of Mind

While homeowner’s insurance may offer some degree of coverage for e-bikes, it often falls short of providing adequate protection against theft, damage, and liability. To enjoy worry-free riding and safeguard your investment, consider purchasing a separate e-bike insurance policy tailored to your needs. With comprehensive coverage, specialized support and economical premium, e-bike insurance offers the peace of mind you need to fully enjoy your e-biking adventures. Don’t let inadequate insurance coverage derail your riding experience—insure your e-bike today and ride with confidence.

Homeowner Insurance Checklist: Protecting Your Home and Investment

Your home is more than just a place to live; it’s a valuable investment worth safeguarding. Homeowner insurance offers crucial protection against unexpected events, but understanding the nuances of your policy is essential. In this comprehensive coverage checklist, we’ll discuss key aspects to help you make informed decisions.

  1. Dwelling Coverage: Dwelling coverage forms the foundation of your homeowner insurance policy. It should encompass the cost of rebuilding your home if it’s damaged or destroyed by covered perils like fire, storms, or vandalism. Ensure the coverage amount is sufficient to reconstruct your home at current construction costs. If available, ask for Guaranteed Replacement and if this is not available then make sure you include Extended Dwelling Coverage which will help protect from rapid inflation within the construction industry which is not uncommon after catastrophes. Another important option to include, especially for older homes, is Building and Ordinance coverage which will help cover additional costs for bringing your home into compliance with local building codes which change year to year.
  2. Personal Property Coverage: Protect your possessions with personal property coverage, which includes furniture, electronics, clothing, and other personal items. Conduct a thorough inventory of your belongings and estimate their value to determine the appropriate coverage limit. Unless it is unavailable, ensure you have Replacement Cost evaluation added to your Personal Property. This will allow you to replace your contents at today’s prices without depreciation being applied.
  3. Liability Protection: Liability coverage safeguards you against legal expenses and claims if someone is injured on your property or if you accidentally damage someone else’s property. It’s a vital component of any homeowner policy. While standard limits often hover around $100,000, consider higher limits for enhanced peace of mind.
  4. Water & Sewer Backup Coverage: Water and sewer backups can result in substantial damage to your home. Ensure your policy includes coverage for these incidents, as it’s not always part of standard homeowner insurance. Verify the coverage limits and be aware of any exclusions.
  5. Additional Living Expenses (ALE) Coverage: If your home becomes uninhabitable due to covered damage, ALE coverage will cover your temporary living expenses which are above your usual costs, including accommodation and meals. Ensure your policy provides adequate ALE coverage to maintain your standard of living during the rebuilding process.
  6. Other Structures Coverage: For additional structures on your property which are detached from your home, such as a garage or shed, confirm that they’re covered under your homeowner insurance policy. Coverage may vary, so understand how it applies to your specific situation.
  7. Special Coverage for High-Value Items: Consider adding scheduled personal property coverage if you own valuable items like fine art, jewelry, or collectibles. This ensures proper protection for these assets, which otherwise may be limited by specific policy sub-limits or other restrictions.
  8. Roof Replacement Evaluation: Roof damage is a common homeowner insurance claim. Familiarize yourself with how your policy evaluates roof replacement. Some policies use actual cash value (ACV), accounting for depreciation, while others offer full replacement cost coverage. Opt for the latter if possible, as it guarantees your roof will be replaced with similar materials at current market prices.
  9. Flood and Earthquake Insurance: Standard homeowner policies generally exclude coverage for flood and earthquake damage. Depending on your location, separate policies may be necessary to protect against these specific perils.
  10. Deductibles: Balance your budget when selecting the deductible for your policy. Deductibles may also vary by cause of loss, as well as percentage of dwelling versus flat dollar. A higher deductible can lower premiums but ensure it’s affordable in the event of a claim.
  11. Discounts and Bundling Options: Explore available discounts, such as bundling your homeowner and auto insurance policies, safety features and updates to your home, to potentially enjoy significant savings.

Safeguarding your home with the right homeowner insurance policy is an essential aspect of responsible homeownership. At LG Insurance Group, we’re dedicated to assisting you in making well-informed decisions. Utilize this checklist as a reference when reviewing your current policy or shopping for a new one. Our team is here to guide you in finding the ideal coverage to suit your needs and budget.

Contact us today to discuss your homeowner insurance options. Your peace of mind is our top priority.

Unlock Savings on Home Insurance: Expert Tips for Smart Homeowners!

Hello, homeowners! At LG Insurance Group, we understand the importance of safeguarding your home without breaking the bank. That’s why we’re excited to share our expert tips on how you can save money on your home insurance while ensuring you have the coverage you need. Let’s dive in!

1. Smart Shopping:

Just like making well-informed choices in life, shopping around for insurance is crucial. As your trusted insurance advisors, we recommend getting quotes from multiple insurance providers to find the most affordable option that aligns with your unique requirements. What’s even better is that as a Trusted Choice Independent Agent, we can do the shopping for you!

2. Bundle and Save:

At LG Insurance Group, we offer bundled insurance packages that can save you money. Combining your home and auto insurance under one roof can unlock significant discounts, making it easier for you to manage your policies and your budget.

3. Fortify Your Home Security:

Investing in home security not only enhances your peace of mind but can also lead to lower insurance premiums. Consider installing smoke detectors, burglar alarms, water leak detectors and reinforced locks to make your home safer and more attractive to insurance companies.

4. Home Maintenance Matters:

Maintaining your home in tip-top shape can have a positive impact on your insurance rates. Regular upkeep, such as roof repairs, plumbing maintenance, heating and electrical system checks, can reduce the risk of accidents and claims. Insurers will ask about this and most will inspect your property on a periodic basis. By keeping your home in excellent condition, you not only save on potential insurance costs but also enhance your overall safety and comfort.

5. Adjust Your Deductible:

Increasing your deductible can be a smart way to reduce your premiums. However, it’s essential to strike a balance that ensures you can comfortably cover the deductible in case of a claim. Our team can help you find the right deductible for your situation.

6. Maintain a Healthy Credit Score:

Your credit score plays a role in your insurance rates. Responsible financial habits, such as timely bill payments and effective credit management, can help you qualify for lower premiums. Think of it as leveling up your financial reputation.

7. Regular Policy Reviews:

Your insurance needs can change over time. That’s why we recommend periodic policy reviews with our experienced agents. This ensures that you’re not paying for unnecessary coverage or missing out on essential protection.

8. Loyalty Rewards:

Staying loyal to LG Insurance Group can come with its own set of rewards. Many insurers offer discounts to long-term customers. However, we also proactively seek out discounts and tailor your policy to fit your evolving needs.

In conclusion, these eight simple strategies can help you save on your home insurance premiums while maintaining comprehensive coverage. At LG Insurance Group, our goal is to empower you with the knowledge and solutions you need to protect your home and your budget effectively.

If you have any questions or need further guidance, please don’t hesitate to reach out to us. We’re here to help you navigate the world of home insurance and make sure you get the most value out of your policy.

Debunking Common Home Insurance Myths: Real-Life Examples Revealed!

Insurance can be a bit of a puzzle, but we’re here to help you put the pieces together. Today, let’s debunk some common myths about home insurance with a few real-life examples. 

Myth #1: “Home Insurance Covers Everything!” 

False! Think of home insurance as a safety net for your home. It’s essential, but it doesn’t catch everything. For instance, if your neighbor’s tree falls on your house and damages your roof, your insurance will likely cover it. However, it might not cover damage caused by a flood. Just like an umbrella won’t keep you dry in a hurricane. 

Myth #2: “I Don’t Need Home Insurance; I’m Careful!” 

Being cautious is excellent, but accidents can still happen. Consider this: Imagine you’re cooking dinner, and a grease fire breaks out in your kitchen, causing damage to your cabinets and appliances. Home insurance is your firefighter in this situation, covering the repair costs. It’s like having a safety net for life’s unexpected mishaps. 

Myth #3: “Home Insurance Covers My Valuables Completely!” 

Not necessarily. Home insurance typically covers your belongings, but there’s a limit to it. For example, if you have a valuable engagement ring worth $10,000 and your policy has a $2,000 limit for jewelry, you might need additional coverage. This extra coverage is like adding special armor to protect your precious items. 

Myth #4: “Home Insurance and Market Value Are the Same!” 

Not quite. Home insurance is based on the cost to rebuild your house, not its market value. Let’s say your home is in a neighborhood that’s become more desirable, increasing its market value. However, if a fire damages your home, your insurance will cover the cost to rebuild it, not the inflated market price. 

Myth #5: “Home Insurance Is Too Expensive!” 

Hold on! Home insurance can be quite affordable. It’s like choosing the right level in a video game – you can adjust your coverage by changing your deductible. A higher deductible means lower monthly premiums, but if you ever need to make a claim, you’ll pay more out of pocket. It’s all about finding the balance that suits your budget. 

So, what’s the bottom line here? Home insurance is your guardian, protecting your home from unexpected events. It’s not as complicated as it may seem, and it’s a vital tool for every homeowner. 

Understanding these home insurance myths with real-life examples can help you make informed decisions when the time comes to get coverage. Think of it as gaining wisdom – the more you know, the better prepared you are for life’s twists and turns. And in the world of insurance, knowledge is your best ally! 

Stay tuned for more insurance insights and tips, and if you have any questions, feel free to ask. Feel free to reach out for additional assistance via https://www.lg-ig.com/compare-quotes.html?t=Home. Until next time, stay informed and stay safe!

Why home and auto insurance rates are continuing to rise in 2023 

Thanks to an unusual convergence of market trends, ushered in by the pandemic and followed by other disruptive events, you may see a bigger change to the cost of your home and auto insurance than usual when it comes time to renew your policies this year. Insurance rates are based on what an insurer thinks it will cost to make you whole in the event of a loss – whether it’s roof damage during a windstorm or a vehicle totaled during a traffic accident. As you’ve likely noticed, pretty much everything costs more than it did even a few years ago.  

What’s driving higher home insurance costs 
If you’ve shopped at Home Depot or Lowe’s lately, you’ve certainly seen that the price tags on building materials have gotten pretty expensive. Last year, the cost of building materials rose 4.7%, reflecting a particularly strong uptick in prices on things like asphalt shingles (16.2%), concrete blocks (18.5%) and drywall (20.4%). 

To make matters worse, the home-building industry is facing a shortfall of more than 300,000 skilled laborers, which is driving up construction-related labor costs. Combined with the high cost of construction materials and historically low housing inventory, this has been making home claims much more expensive for insurance companies.  

What’s driving higher auto insurance costs 
Ongoing supply chain issues are driving a shortage of car parts and equipment, which were 22.3% more expensive at the end of 2022 than they were two years earlier. The overall cost of maintaining and repairing vehicles increased 18.4 % over the same timeframe – exacerbated by a growing shortage of car repair technicians. 

The same issues depleted the supply of new and used cars during the COVID-19 pandemic, and inventories have not yet recovered. As a result, the average price of new cars has risen 20% since 2020, while used car prices have skyrocketed 37%.  

Rising medical costs are another key factor. While the number of injuries and fatalities from car accidents has somewhat declined from its peak in 2021, the rising cost of medical care continues to drive higher claims costs. Between 2020 and 2022, the overall cost of medical care in the U.S. increased 6.8% 

Focus on value as you explore ways to save 
Keep in mind that savings come in many forms. The value of the coverage you choose today may save you more in the long run than the lowest possible premium.  

Contact LG Insurance Group to review your current coverage. We’ll help you explore opportunities for discounts that could offset higher rates when it comes time to renew. 

Sources: Safeco Insurance, National Association of Realtors, Federal Reserve Bank of St. Louis, Home Builders Institute, CoreLogic, Consumer Price Index, TechForce Foundation 

Demystifying Co-Insurance Clause in Property Insurance Policies

When it comes to protecting our homes, businesses, or personal belongings, property insurance is crucial. However, it’s essential to understand the different clauses and terms in your insurance policy. One such clause is the co-insurance clause, which affects how much coverage you receive in case of a loss. In this blog post, we will explain the co-insurance clause in simple terms, so high school students can grasp its significance in property insurance.

What is Co-Insurance?

Co-insurance in property insurance means sharing the risks and costs between the policyholder and the insurance company. It’s an agreement that requires the insured person to maintain coverage for a certain percentage of the property’s total value. This percentage is usually specified in the insurance policy and is known as the “co-insurance percentage.”

Understanding the Co-Insurance Clause:

The co-insurance clause ensures that you have enough coverage for your property relative to its value. It prevents underinsurance, which is when people intentionally or unintentionally undervalue their property to pay lower premiums.

How Co-Insurance Works:

To figure out the co-insurance penalty, you need to calculate the “insurance to value” ratio. This ratio compares the amount of insurance you have to the actual value of the property. Here’s the formula:

Insurance to Value Ratio = (Insurance Carried / Insurance Required) × 100

If the ratio is equal to or greater than the co-insurance percentage stated in your policy, you’ll be fully covered for any losses. However, if the ratio is less than the co-insurance percentage, a co-insurance penalty will come into play.

Co-Insurance Penalty:

When a co-insurance penalty is triggered, the insurance company won’t fully reimburse your loss. Instead, they will pay only a portion based on the co-insurance ratio. Here’s the formula to calculate the claim payment:

Claim Payment = (Actual Loss × Insurance Carried) / Insurance Required

Let’s say you have a property worth $500,000, and your co-insurance percentage is 80%. If you have insurance for only $350,000 (70% of the property’s value), then you do not meet the 80% threshold required in your policy. If you suffer a loss of $100,000, the insurance company will calculate your claim payment like this:

Claim Payment = ($100,000 × ($350,000) / $500,000) = $70,000

In this case, the insurance company will only reimburse you $70,000 instead of the full $100,000 because you didn’t meet the co-insurance requirement, less the applicable policy deductible.

Importance of Adequate Coverage:

The co-insurance clause emphasizes the importance of having enough coverage for your property. If you don’t, you could face significant financial losses when making a claim. It’s crucial to review your insurance policy regularly to ensure that the insured amount matches the current value of your property.

Tips to Avoid Co-Insurance Penalties:

  1. Get an Accurate Valuation: Have your property professionally appraised to determine its actual value. This will help you set an appropriate insured amount.
  2. Seek Advice: Consult an experienced insurance agent or broker who can explain the co-insurance clause and help you choose the right coverage limits.
  3. Review Your Policy: Periodically reassess your insurance needs to account for any changes in property value, renovations, or new acquisitions that may require adjustments to your coverage.


The co-insurance clause in property insurance is a significant provision that ensures you have adequate coverage for your property’s value. By understanding this clause and taking steps to avoid co-insurance penalties, you can protect your assets effectively. Regularly reviewing your policy and seeking guidance from insurance professionals will help you make informed decisions, providing you with peace of mind, knowing your property is properly safeguarded.

Do You Need Home Insurance if Your Home is Owned Outright?

If you finance or own your home, you must have home insurance to protect you against various risks. If you finance your home, you are required to have home insurance. However, if you paid your home off, you still need coverage to protect against losses. If you need excellent home insurance products, you can find them at LG Insurance Group. We serve the residents in and around the Marietta, GA, area. 

Home Insurance Coverage 

Your home insurance protects you from losses associated with covered risks such as fire and structural damage from storms. However, you may only be required to have home coverage if you own your home partially and there is no financing. Even so, you risk paying for repairs or replacement out of pocket without insurance. It would be best if you kept insurance in place to protect you and your family against hardships resulting from risks. 

Our team of experts can assess your current solutions and provide solutions that work for your specific needs. We can provide you with a summary of your needs and then offer insurance products with the best protection. 

Find Out More

If you would like to find out more about home insurance and how it can offer a blanket of protection, please call or stop by LG Insurance Group, serving Marietta, GA. Our team is knowledgeable and ready to provide assistance and information to help you make the right choice. Don’t own your home without insurance to prevent losses that can create financial hardship. Get protection that you can rely on to keep you safe all year. 

Understanding Insurance Loss Valuation Options

Insurance can be a confusing topic, especially when it comes to understanding the different types of coverage and their associated terms. One area that often causes confusion is the difference between actual cash value, replacement cost, stated value, and agreed value. In this blog post, we’ll break down each term to help you better understand your insurance coverage.

Actual Cash Value

Actual cash value (ACV) is the fair market value of an item at the time of loss. It takes into account the item’s age, condition, and depreciation. In the event of a covered loss, the insurance company will typically pay out the actual cash value of the item, which means you may not receive enough money to replace the item with a new one. For example, if you have a 10-year-old TV that is damaged in a covered loss, the insurance company will pay out the current market value of a 10-year-old TV, not the cost to replace it with a new one.

Replacement Cost

Replacement cost is the amount of money it would take to replace an item with a new one of like kind and quality. Unlike actual cash value, replacement cost does not take into account depreciation. In the event of a covered loss, the insurance company will typically pay out the replacement cost of the item, which means you will receive enough money to replace the item with a new one. For example, if you have a 10-year-old TV that is damaged in a covered loss and you have replacement cost coverage, the insurance company will pay out the cost to replace the TV with a new one of like kind and quality.

Stated Value

Stated value is a term used in insurance policies for items that have an agreed-upon value between the policyholder and the insurance company. For example, if you have a classic car that is worth $50,000, you and your insurance company may agree on a stated value of $50,000 for the car. In the event of a covered loss, the insurance company will pay out the stated value of the car, regardless of its actual cash value or replacement cost.

Agreed Value

Agreed value is similar to stated value in that it is an agreed-upon value between the policyholder and the insurance company. However, with agreed value coverage, the value is typically determined at the time the policy is written, and it cannot be changed during the policy term. This means that if the item’s value increases or decreases, the agreed value will not change. Agreed value coverage is often used for items that are difficult to value, such as antiques or art.

In conclusion, understanding insurance terms such as actual cash value, replacement cost, stated value, and agreed value can help you make informed decisions about your insurance coverage. It’s important to review your policy and speak with your insurance agent to ensure you have the appropriate coverage for your needs. Contact LG Insurance Group if you need assistance understanding your coverages or other available options.

How does a percentage deductible on my homeowner’s insurance work?

A percentage wind hail deductible is a type of insurance policy deductible that is commonly used in areas that are prone to severe weather events, such as hurricanes, tornadoes, and hailstorms. The deductible is the amount of money that the policyholder is required to pay before their insurance coverage kicks in. With a percentage wind hail deductible, the deductible amount is calculated as a percentage of the insured property’s total value (dwelling limit), rather than as a fixed dollar amount.

For example, if a homeowner has a wind hail deductible of 2% and their home is insured for $500,000, then their deductible amount would be $10,000. If their home sustains damage from a hailstorm that costs $20,000 to repair, the homeowner would be responsible for paying the first $10,000 (the deductible), and the insurance company would cover the remaining $10,000.

The percentage wind hail deductible can vary depending on the insurance policy and the location of the property. In areas that are more prone to severe weather events, the percentage deductible may be higher than in areas with lower risk. The deductible may also vary based on the type of damage that occurs. For example, there may be a separate deductible for wind damage and hail damage.

It’s important to note that the percentage deductible applies to the insured property’s value, not the amount of the insurance claim. This means that if the insured property has increased in value since the policy was purchased, the deductible will also increase. It’s also important to understand that the deductible is a separate expense from the insurance premium, so it’s important to factor in the deductible amount when choosing an insurance policy and budgeting for the cost of repairs in the event of damage from severe weather events.