Deductible
The amount you pay out of pocket before your insurance company pays for a claim.
What It Means
Your deductible is your financial responsibility when you file an insurance claim. Common deductibles for homeowners insurance range from $500 to $5,000, though some policies allow higher or lower amounts.
If your roof suffers $10,000 in damage from a storm and your deductible is $1,000, the insurance company pays $9,000 and you pay $1,000.
Why Deductibles Matter
A higher deductible lowers your monthly insurance premium. A lower deductible raises your premium but reduces what you pay when damage occurs.
Many homeowners choose higher deductibles to save on premiums, then regret it when a claim happens. Know your number before disaster strikes.
Check Your Policy
Call your insurance agent today and ask for your exact deductible amount. Don't assume—different policies have different deductibles, and they can vary by type of damage.