Home Insurance Policy Deductible

A standard homeowners insurance policy deductible is usually in the range of 500 to 2 000 although lower and higher deductible home insurance plans are also common.

Home insurance policy deductible. Dollar amount deductibles work like this. An insurance policy with a percentage based deductible will define a specific percentage of your home s insured value to be the deductible. If your deductible is 1 000 and you file a roof claim totaling 6 500 in damages you pay the first 1 000 of the repair costs out of. A deductible decides how much you will have to pay when you file a claim and affects your policy s cost.

In special cases however they might be wholly or partially tax deductible as a business expense. Homeowners insurance premiums are typically not tax deductible. Homeowners insurance companies present their deductibles differently. Homeowners insurance deductibles are an important part of a home insurance policy.

However a lower deductible means you ll pay more in premiums. While every home insurance policy comes with a deductible you do have some power in choosing the deductible amount. A deductible for a homeowners insurance claim is not very different from a deductible on an auto insurance policy. To use a a homeowners policy example a deductible would apply to property damaged in a rogue outdoor grill fire but there would be no deductible against the liability portion of the policy if a burned guest made a medical.

Let s say your policy. Deductibles generally apply to property damage not to the liability portion of homeowners or auto insurance policies. Your premium will be lower if you choose a higher deductible and vice versa. Typically the higher your homeowners insurance deductible the lower your premium.

Commonly homeowner s insurance deductibles fall between 1 000 and 2 500 for dollar value based claims and may be as high as 5 percent of a home s insured value for policies that are percentage based. For example with homeowners or auto insurance policies it s typically possible to up the dollar amount of your deductible in order to lower the cost of your overall policy. Just as with auto insurance the higher your deductible amount for homeowners insurance the lower your monthly premium will be. Percentage based deductibles are often considerably higher than flat rate home insurance deductibles.

The higher the amount of risk you are willing to cover via the deductible the less risk for the insurance company. You choose the deductible amount and your monthly premium is adjusted accordingly. With homeowners and car insurance policies for example you ll pay a separate deductible for each individual claim.