Your deductible is the part of a covered loss you pay. The insurer subtracts it from what it owes. Some policies have a separate, higher deductible for water damage or wind and hail, so check your declarations page.
How the math works
If covered damage totals $14,000 and your deductible is $1,000, the insurer pays up to $13,000, minus any depreciation held back. You pay the first $1,000, usually to your contractor.
Types of deductibles
- Flat dollar amount, like $1,000 or $2,500.
- Percentage deductible, often for wind or hail, based on your dwelling coverage. A 2% deductible on a $300,000 home is $6,000.
- Separate water damage deductible, which some insurers now use.
Where to find yours
Your declarations page, usually the first page of the policy, lists your deductibles.
Should you file if damage is close to your deductible?
Get an estimate first. Water damage is often bigger than it looks, once hidden moisture under floors and inside walls is found. Weigh the payout against the chance of a rate increase at renewal.
Watch out for deductible waiver offers
A contractor who offers to "cover" or "waive" your deductible by inflating the bill is asking you to take part in insurance fraud. It's illegal in many states and can void the claim.
Common questions
Do I pay the deductible to the insurer?
No. The insurer subtracts it from what it pays. You pay that share of the repair cost to your contractor.
Is there a deductible on additional living expenses?
Usually one deductible applies per claim, not to each part separately. Check your policy.
Can my deductible be different for different losses?
Yes. Many policies have separate deductibles for wind, hail, hurricanes or water damage.