A deductible is the amount of money that an individual must pay before an insurance company starts to pay a certain claim. A deductible is a large part of the insurance business and whether it is a home or auto insurance, adjusting the deductible one way or the other can save you a good deal of money. A lot of the strategy behind selecting a deductible is your financial situation and risk factors. The first factor in selecting a certain deductible is your current financial situation. If you are in good shape financially, you may want to select a higher deductible. The selection of a higher deductible can save you up to 25% on your premium. Go over your financial situation and then meet with a home insurance agent to see if you can adjust your deductible and save money. While home insurance premiums range based on numerous factors, one factor to pay special attention to when selecting home insurance is the location of your home. If you are located in a disaster prone area, it is absolutely vital that you read the insurance policies details as many home insurance companies have different deductibles for different types of damage. If you are on the east coast, be sure to check if there is a separate deductible deductible for windstorms or hail. If you are on the west coast, check and see what the separate deductible is on earthquakes. Being smart and taking time to read the policy can save you a lot of money. People who don’t ask questions and assume their home is covered in all situations are the ones who get into giant financial trouble.