New homeowner insurance clause could increase deductible payment - KMOV.com

New homeowner insurance clause could increase deductible payments

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By Elizabeth Eisele By Elizabeth Eisele
By KMOV Web Producer By KMOV Web Producer

(KMOV.com) -- A trend in the home insurance industry could end up costing homeowners big. Instead of a flat deductible, some companies have added a wind and damage clause that makes homeowners responsible for paying for a larger percentage of repairs.

Russ Losing’s family has live in his house for more than 50 years and has insurance, but when his renewal notice came, he saw a change and there was a new clause.

“If I go to have hail damage fixed and it costs an extra $1,000, that’s a blow,” said Losing, “Instead of a $1,000 deductible, I have a $2,000 deductible.”

That means for wind and hail damage, the most common claims in the St. Louis area, Losing’s deductible is one percent of the value of his house which in this case $1800 instead of $1,000.

Some independent insurance companies said they are still a number of companies offering a flat deductible rate. They said homeowners should shop around for the best deal.

Losing said his insurance company offered him the option of paying an additional $1,400 a year to remove the new clause. 

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