Deductibles

Home Insurance Deductible Guide

Updated June 23, 2026 ยท Informational guide

A deductible is the amount you pay out of pocket on a covered claim before the insurer pays the remaining covered amount. Higher deductibles usually lower the premium, but they also increase the cash you need after a loss.

Flat deductibles vs percentage deductibles

A flat deductible is a fixed dollar amount such as $1,000 or $2,500. A percentage deductible is based on a coverage limit, often the dwelling limit. Percentage deductibles can be much larger than they first appear, especially on high-value homes.

Separate wind, hail, or hurricane deductibles

In storm-prone areas, a policy may use a separate deductible for wind, hail, named storms, or hurricanes. Ask the carrier to show the dollar amount, not just the percentage, before you compare the annual premium.

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A practical way to choose

Choose the highest deductible you could comfortably pay without borrowing in an emergency. If a $5,000 deductible makes the policy cheaper but would delay repairs after a claim, the savings may not be worth the added risk.

Test deductibles in the calculator

Sources

Insurance Information Institute: Understanding deductibles NAIC: Homeowners Insurance