What’s Left of Obamacare, Why You’re Not Covered for Water Damage and 13 Other Crucial Things To Know About Insurance

Insurance details can confuse even the most educated consumer. Misunderstand these key things, and it can cost you dearly.

1. What your deductible means

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Let’s start with the most basic of basics: the deductible. It’s something that’s attached to your health, auto and homeowner policies, but what is it? Nearly three-quarters of 2,000 adults surveyed by insurance website Policygenius in 2016 said they were confident they could define a deductible, but then only 50 percent did so correctly.

A deductible is simply the amount you pay out-of-pocket before your insurance kicks in. If your health insurance deductible is $6,000, you must pay $6,000 out-of-pocket before your insurance company starts paying claims for anything other than preventive services. If your $10,000 car gets totaled and your auto insurance deductible is $1,000, your insurer will pay out $9,000.

Make sense?

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