Key points
- Your deductible is the amount you pay out of pocket on each claim before the insurer pays.
- Most policies have a flat dollar deductible, often $1,000 to $2,500, for everyday claims.
- Many policies in storm-prone areas add a separate wind, hail or hurricane deductible set as a percentage of dwelling coverage, often 1% to 5%.
- A higher deductible lowers your premium, but only choose one you could pay from savings.
In this article
Deductible types
- Flat deductible: a set dollar amount, such as $1,000
- Percentage deductible: a share of your dwelling limit
- Wind or hail deductible: common in the Plains and Midwest
- Hurricane deductible: common along the Atlantic and Gulf coasts
Deductible rules vary by state and insurer. Your declarations page lists every deductible on your policy.
Your homeowners insurance deductible decides how much of each claim you cover yourself. Pick it carefully, because it trades a lower premium today for a bigger bill on the worst day.
Below is how to turn a percentage deductible into dollars so there are no surprises.
Turning a percentage deductible into dollars
Multiply your dwelling coverage (Coverage A) by the deductible percentage. The result is what you pay before the insurer pays on a wind, hail or hurricane claim.
| Dwelling coverage | 1% deductible | 2% deductible | 5% deductible |
|---|---|---|---|
| $250,000 | $2,500 | $5,000 | $12,500 |
| $350,000 | $3,500 | $7,000 | $17,500 |
| $500,000 | $5,000 | $10,000 | $25,000 |
On a home insured for $350,000, a 2% storm deductible is $7,000, seven times a typical $1,000 flat deductible.
Flat vs percentage deductibles
Flat deductible
- A set amount, such as $1,000 or $2,500
- Same no matter how much your home is insured for
- Applies to most claims, like theft or a kitchen fire
Percentage deductible
- A share of your dwelling coverage, such as 2%
- Grows as your coverage grows
- Usually applies to wind, hail or named storms
Quote a few deductibles side by side
SponsoredHow to choose your deductible
- Check your emergency fund. Your deductible should be an amount you could pay tomorrow.
- Ask for quotes at $1,000, $2,500 and $5,000 and compare the yearly savings.
- Divide the extra deductible by the yearly savings. If it would take many claim-free years to break even, the higher deductible may not be worth it.
- Check whether a separate wind or hurricane deductible applies in your area.
A lower premium also lowers your monthly mortgage payment if your lender collects insurance through escrow.
Compare deductible options from local insurers
Rates change from one ZIP code to the next. Add yours to see homeowners insurance options available where you live, with no commitment.
When the deductible applies
Do I pay the deductible to the insurer?
No. The insurer subtracts it from your claim payment. You pay that share to your contractor.
Is there a deductible on liability claims?
Usually not. Deductibles generally apply to damage to your own property.
What if damage is less than the deductible?
The insurer pays nothing, and filing may still go on your claims record. Many people pay small repairs themselves.
Frequently asked questions
What is a good deductible for homeowners insurance?
Many homeowners choose $1,000 to $2,500. The right amount is one you could comfortably pay from savings.
Does a higher deductible lower my premium?
Yes, usually. The savings shrink as the deductible rises, so compare a few levels.
Can I have two deductibles?
Yes. Many policies have a flat deductible for most claims and a separate percentage deductible for wind, hail or hurricanes.
Do I pay the deductible every time I file a claim?
Generally yes, once per claim. Some states have special rules for hurricane deductibles, such as applying them once per season.
See home insurance options for your address
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