Earn Credit Immediately
We’ll credit your deductible $100* from day one. Let’s say you have a $1,000 deductible. Good news — it just dropped to $900.
As a homeowner, you’re in control of the color on your walls and the flooring in your kitchen — but you can’t control the unexpected. That’s why we’re offering Diminishing Deductible as a new feature you can purchase to help save for surprise expenses. With this coverage, we’ll credit (lower) your deductible to help you better prepare for the out-of-pocket costs when you have a claim.
It’s one of the ways we give you control over what you pay.
So how does it work? It’s simple!
While your homeowners insurance will be there to step in and cover expensive damages, you’ll probably have a deductible to pay first, which can often be a financial setback in itself.
Our Diminishing Deductible rewards you for being a responsible homeowner by crediting your deductible $100* each year, up to your policy maximum.
Let’s take a closer look so you know exactly how you can benefit from our homeowners insurance with Diminishing Deductible.
At American Family, we know that a deductible isn’t always the easiest thing to pay after the unexpected. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your deductible amount that you owe before your insurance coverage kicks in.
Here’s how it happens:
We’ll credit your deductible $100* from day one. Let’s say you have a $1,000 deductible. Good news — it just dropped to $900.
Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum limit, as long as you maintain your policy with us.
If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets, so you’ll go right back to earning a reduced deductible amount.
Great question. Your Diminishing Deductible can be applied to the following types of deductibles:
That amount you’ve been earning the last few years will be subtracted from the deductible amount you owe.
Let’s put it into perspective: the siding of your home blew off due to a windstorm and you need to file a claim to repair the damages. The cost to repair the siding is $5,000, but before your insurance kicks in to cover the cost, you have to pay your $1,000 windstorm or hail deductible. You were planning on renovating your kitchen this year and aren’t happy about handing over a $1,000 deductible before your insurance pays to cover the damage — and thankfully, now you don’t have to.
Since this is the first homeowners insurance claim you’ve filed in six years, you’ve earned a $700 Diminishing Deductible amount and knocked your deductible amount to $300. Now you’ll only have to pay $300 before your insurance kicks in to cover the remaining $4,700.
There isn’t one! We want to help you be more comfortable and prepared with the out-of-pocket costs that come with filing a home insurance claim. This new coverage is a way to proactively manage the financial hits that can come with the unexpected.
Once you’ve paid to add this coverage to your homeowners policy, you’ll continue to earn a lower deductible each year up to your policy maximum.
If it’s ten years down the road and you still haven’t filed a claim, that reward will stay put until you need to use it. Just make sure you don’t let your policy lapse for more than 60 days, cancel your policy or remove this coverage from your policy since you won’t be able to get the accumulated amount back.
Consider this:
When you insure your home with American Family, you don’t just gain a piece of paper with your policy — you gain extra protection and peace of mind. Our Diminishing Deductible is designed to ease some of the stress that comes with the claims process — specifically the out-of-pocket expenses. Connect with your American Family Insurance agent to find out more about our home insurance Diminishing Deductible and how its immediate earning benefits can help you financially protect what matters most.
Proactively manage the financial hits that can come with the unexpected.
Diminishing Deductible does not apply to all property deductibles.
Some coverages may not be available in your state. Available at renewal for existing policyholders. Please speak with your agent to learn more about your coverage options.
Windstorm or hail deductible not applicable in GA. Named stormed deductible applies only to GA.
* Maximum limit of $1,000 for homeowners insurance. Maximum limit of $500 for renter insurance, condo insurance and manufactured home insurance.
This coverage is not available in MN at this time.
Some coverages may not be available in your state or on your specific policy form. Please speak with your agent to learn more about your coverage options.