noun
deductible
In plain English
The amount you pay out of pocket on a claim before insurance starts paying.
Higher deductible = lower premium, but more risk on you when a claim hits. Most homeowners pick a deductible they could write a check for tomorrow without thinking about it.
What it covers
Your share of every covered claim. Comes off the top of every payout.
What it does not cover
Liability claims (lawsuits against you) typically have no deductible — those are paid in full by the insurer up to the limit.
Where it trips people up
Wind/hail and named-storm deductibles are often percentages of dwelling value, not flat dollars — a 2% wind deductible on a $500K home is $10K, not the $1K you're used to seeing.
The technical version
The portion of a covered loss that the insured is responsible for paying before insurance proceeds apply.
Worked example
Hailstorm hits a $400K home with a 2% wind/hail deductible.
- Damage
- Roof, gutters, siding · $32,000
- Deductible
- 2% × $400K = $8,000 owed by homeowner
- Insurer pays
- $32,000 − $8,000 = $24,000
The result. the homeowner writes a $8K check (or finances it from savings) before any work starts. The percentage deductible surprises a lot of people the first time they file a wind/hail claim.