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Understanding Home Insurance Deductibles: An Interview with Kevin Koenegstein of M&K Insurance Agency

By Kevin Koenegstein

Tell us a little bit about your company and its foundation.

Our office was founded in 1982, and started as a life insurance agency. My father Dave Koenegstein purchased half of the Agency in 1988 and was sole owner of the Agency from 1991 until 2008. I started with the Agency in 1993 and took over ownership in 2008.

What are some of the services your company provides?

We provide Homeowners, Automobile, Life, Health, Medicare Supplement, Part D and Commercial Insurance.

First off, what is the definition of a deductible?

The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs of your loss.

What are the two types of deductibles? Do these types ever vary across different insurance companies?

Percentage and Flat
Most companies use a flat deductible for homeowners claims. Although some do use both flat and percentage depending on the type of loss. Some companies use a flat deductible for all claims except roof claims and they use either a 1% or 2% claim for roofs.

How are deductibles calculated?

Most companies use flat deductibles for certain losses.

Is it more common for an insurance company to use fixed dollar amount or a percentage of my home's insured value?

It is more common for companies to use fixed dollar deductibles.

What are the disadvantages to choosing a higher deductible?

The biggest disadvantage is the larger out of pocket expense for the insured and the fact that the insured may be responsible for the entire claim. The advantage of a larger deductible is the savings on the insurance premium.

What's the best way for people to get in contact with you and your company?

We can be contacted by phone at 618-548-6161, fax at 618-548-8907 or email at Or we can be contacted through our website at

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