What Is a Homeowners Insurance Deductible?

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Your homeowners insurance deductible is the amount of money you have to pay out of pocket before your insurance provider will start contributing money toward a claim. Setting a high deductible will lower your premiums but will also leave you on the hook for a greater portion of the costs whenever you file a claim.

Read below to learn more about home insurance deductibles such as when different types of deductibles apply and what deductible you may want to set for your policy.

Key Takeaways

  • Your deductible is the money you have to contribute out of pocket toward every homeowners insurance claim and it is generally deducted from the settlement you receive from your insurance company.
  • Raising your deductible will lower your premiums and vice versa.
  • Depending on the details of your policy, your deductible could be a fixed rate, a percentage of your dwelling coverage limit or a combination of the two.
  • Percentage-based deductibles often apply to claims related to natural disasters like hurricanes and earthquakes.
  • Most homeowners opt for a flat $1,000 deductible.

How Do Home Insurance Deductibles Work?

In homeowners insurance, a deductible is a predetermined amount of money you are responsible for covering out of pocket on every home insurance claim. The higher your deductible is, the lower your premiums will be since it means your insurance company pays less anytime you experience a covered loss.

homeowners insurance deductible vs monthly premium

Deductibles exist to help keep home insurance prices stable by discouraging unnecessary claims. For example, if you have a $500 deductible, there is no point in filing a claim for $300 worth of repairs since the cost would not exceed your deductible. Even if your home needs $800 worth of repairs, you may still decide against filing a claim because the potential increase to your homeowners insurance rates may not be worth the immediate $300 savings.

Keep in mind that not every type of homeowners insurance claim requires a deductible. You will generally have to pay a deductible on dwelling, other structures and personal property claims but you may not have to for loss of use, personal liability or medical payments claims.[1]

Who Pays for the Deductible?

Rather than directly paying a deductible to your insurance company, the deductible is instead subtracted from your insurance payout after your claim is approved. For example, if your home incurs $20,000 worth of damage during a fire and you have a $1,000 deductible, your insurer will pay you $19,000.

As a result, you will effectively pay your deductible to the repair workers who fix your home before using your insurance settlement to pay the rest of the repair bill.

What Types of Homeowners Insurance Deductibles Are There?

There are two major types of deductibles that can apply to a homeowners insurance policy: fixed and percentage deductibles. You may be able to select the type of deductible you would like for your policy or the type that applies may vary depending on your location and the peril that has impacted your home.

Fixed Deductible

The most common type of home insurance deductible is a fixed or flat deductible.[2] With this standard deductible type, you will be responsible for covering a set amount of money for every claim. For example, if you select a fixed deductible of $2,000, then you will have to cover the first $2,000 of every claim yourself regardless of your policy’s coverage limits.

Percentage Deductible

Conversely, if you have a percentage deductible, the amount of money you have to pay out of pocket will be set at a percentage of your dwelling coverage limit. For example, if your policy includes $300,000 worth of insurance coverage for the structure of your home and you have a 2% percentage deductible, then you will have to cover $6,000 out of pocket every time you file a claim.

Split Deductible

If you have a split or hybrid deductible, then you may have to pay either a flat deductible or a percentage deductible depending on the type of claim you file. Generally, you will pay a percentage deductible for claims related to specific perils like wind and hail, while a flat deductible will apply to all other claims.

Your homeowners insurance company will likely only require you to pay a percentage deductible on claims related to certain perils if your region is prone to severe damage from those perils. For example, percentage-based deductibles apply to hurricane claims for homeowners throughout the southern and eastern parts of the United States and in Hawaii.[3]

hurricane deductibles coverage per States in U.S. maps

What Are Disaster Deductibles?

You may have to pay a special deductible on claims related to natural disasters even if they are covered by a standard homeowners policy. Meanwhile, you may have to purchase separate insurance policies for natural disasters that are excluded from standard homeowners coverage, with these policies requiring deductibles as well. See the below table for an overview of disaster deductibles and relevant information surrounding them.

Natural Disaster

Covered by Standard Insurance

Typical Deductible Ranges

Additional Notes


Yes, but may be excluded depending on your location

1% to 10% of your dwelling coverage limit or higher[3]

Special deductible usually applies to tropical storms that have been named by the National Weather Service[3]


Yes, but may be excluded depending on your location

1% to 5% of your dwelling coverage limit[3]

Special deductible applies to windstorms other than hurricanes[3]



2% to 20% of your dwelling coverage limit[4]

Minimum deductible may be set at 10% of your dwelling coverage limit in earthquake-prone states like Washington, Nevada and Utah[4]



$1,000 to $10,000 through the National Flood Insurance Program (NFIP)[5]

Building claims and contents claims require separate deductibles[6]

While you normally have to pay your deductible every time you file a claim, homeowners in Florida generally only need to pay one hurricane deductible per year even if they file multiple claims. However, subsequent claims may require you to pay a standard deductible or the rest of your hurricane deductible if you didn’t fully meet it through your first claim.[7]

Note that this means you should always file an insurance claim after a hurricane damages your home in Florida even if the repair costs wouldn’t exceed your deductible because your insurance carrier needs to keep track of how much of your deductible is left for the year.[7]

What Is a Normal Deductible for Homeowners Insurance?

The most common flat deductible is $1,000, although $500 and $2,000 are also common options for homeowners whose policies come with fixed deductibles.[8] That said, you are usually allowed to opt for an even higher insurance deductible if you so choose.

How Do I Choose the Right Home Insurance Deductible?

To determine the right home insurance deductible for your policy, you need to consider how likely you are to file a claim and how much money you would feel comfortable spending at one time. For example, a higher deductible may be better if you don’t anticipate filing multiple claims in the near future or if you have plenty of money saved up in case of an emergency and would prefer to save money on your regular premium payments.

Conversely, a lower deductible may be better if you live in a high-risk area where you could see yourself filing multiple claims or if you couldn’t afford to pay more than $1,000 out of pocket due to a sudden loss and would rather budget for higher premium payments.

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Can I get my homeowners insurance deductible waived?

You may be able to get your homeowners insurance deductible waived depending on your insurer and your circumstances. For example, Nationwide Private Client waives the deductible for certain high-value homeowners on claims for more than $50,000.[9]

How does my deductible affect my home insurance premium?

Your deductible has an inverse relationship with your home insurance premium, meaning you can lower your premium by raising your deductible and vice versa.

Should I consider a low or high deductible for home insurance?

You may want a low home insurance deductible if you anticipate filing multiple claims or would prefer higher premiums over a bigger upfront payment whenever you file a claim. Conversely, you may want a high deductible if you don’t anticipate filing multiple claims or would prefer a bigger upfront payment whenever you file a claim over higher premiums.

Are home insurance deductibles tax deductible?

Home insurance generally isn’t tax deductible but you may be able to deduct a portion of your premiums from your taxes if you operate a home-based business.[10]


  1. Allstate Insurance. “Home Insurance Deductibles and Limits.” Accessed September 25, 2023.
  2. Insurance Centers of America. “Flat vs. Percentage Deductible.” Accessed September 25, 2023.
  3. Insurance Information Institute. “Background on: Hurricane and Windstorm Deductibles.” Accessed September 25, 2023.
  4. Insurance Information Institute. “Background on: Earthquake Insurance and Risk.” Accessed September 25, 2023.
  5. National Flood Insurance Program. “Flood Insurance Manual,” Page J-18. Accessed September 25, 2023.
  6. National Flood Insurance Program. “Flood Insurance Coverage, Deductibles Explained.” Accessed September 25, 2023.
  7. Florida Department of Financial Services. “Florida’s Hurricane Deductible,” Page 7. Accessed September 25, 2023.
  8. American Family Insurance. “Homeowners Insurance Deductibles.” Accessed September 25, 2023.
  9. Nationwide Private Client. “Higher Deductibles.” Accessed September 25, 2023.
  10. Nationwide. “Is Homeowners Insurance Tax Deductible?” Accessed September 25, 2023.

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