Insurance guide
Understanding Home Insurance Deductibles
Learn how flat-dollar and percentage deductibles affect your out-of-pocket cost after a covered loss.
A deductible is the portion of a covered property claim you are responsible for before the insurer pays. A higher deductible can reduce premium, but it also increases the amount you must be prepared to pay after a loss.
Some policies use one deductible for most covered losses and separate deductibles for risks such as water, wind, or wildfire. Percentage deductibles are generally calculated from the dwelling coverage limit, not from the amount of the claim.
Compare the actual dollar amount of every deductible with the premium savings. The stronger option is one that remains manageable during a claim while preserving the coverage needed to rebuild or repair the property.