Home insurance deductibles
Often more than one, and they do not all work the same way.
The deductible is what you carry yourself before the policy pays. On a home policy that is rarely a single number, which is the part that catches people out.
Most policies carry a standard deductible and then one or more separate deductibles that apply only to specific perils, calculated on a different basis entirely.
The standard deductible
This is the flat amount that applies to most claims. Raising it reduces the premium, lowering it increases it, and the trade is straightforward.
The right question is not which figure saves the most. It is which figure you could actually produce at short notice, in the same week you are dealing with a damaged house.
A deductible you cannot fund converts a covered loss into an uncovered one, which is the opposite of what the policy was bought for.
Separate deductibles, and why they are different
Many policies apply a separate, higher deductible to specific perils — wind and hail being the usual ones, and named storms in some places.
These are frequently expressed as a proportion of the dwelling limit rather than as a flat sum, which means they scale with the value of the house and can be substantially larger than the standard deductible.
Whether one applies to you, and on what basis, depends on the property and the policy rather than on any general rule. It is stated on the declarations page and is worth reading before a storm rather than after one.
How a percentage deductible behaves
A flat deductible stays where it is. A percentage deductible moves every time the dwelling limit moves, including when it is adjusted upward automatically at renewal to keep pace with building costs.
So the amount you would carry yourself can grow year on year without anything on the policy appearing to change, and without any decision on your part.
This is the single most useful reason to read the declarations page at renewal rather than only the premium.
Whether to claim at all
Below or near the deductible there is usually nothing to gain, and there can be something to lose, since claims history affects future pricing and eligibility.
The rough test is whether the claim is meaningfully larger than the deductible and whether the loss is one you could otherwise absorb. Small claims made against a low deductible are the ones most likely to cost more over time than they recover.
Reporting a loss is not the same as claiming on it, and asking an insurer a hypothetical question about cover is not the same as either. If you are unsure, ask about the policy rather than opening a claim.
Common questions
Because specific perils, commonly wind and hail, are frequently written with their own deductible on a different basis from the standard one. Both are stated on the declarations page.
One calculated as a proportion of the dwelling limit rather than as a flat sum, so it scales with the insured value of the house — including when that value is adjusted upward at renewal.
Only as far as you could comfortably fund it at short notice. The saving is real, but a deductible you cannot produce turns a covered loss into one you carry yourself.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.