How homeowners and renters insurance deductibles work
Unlike how health insurance works, there's no such thing as "meeting" your annual renters or homeowners deductible. Instead, your deductible will apply for each claim you file. Your insurance company will only pay for covered losses above your deductible. So if your deductible is $1,000 but the repair quote only comes to $500, you're better off not filing an insurance claim.
If your home is completely destroyed (resulting in a total loss), your insurer may pay up to the limit of your coverage, minus your deductible.
The higher your deductible, the greater your out-of-pocket expenses will be. But a higher deductible means a lower overall premium, and vice versa.
What is the standard deductible for homeowners insurance?
Homeowners deductibles generally range between $500 and $5,000, depending on your insurer. Keep in mind that your homeowners policy includes several coverages, and not all of them will have a deductible. Here's the breakdown:
These home insurance coverages typically have a deductible:
- Dwelling coverage (Coverage A)
- Other structures coverage (Coverage B)
- Personal property coverage (Coverage C)
These home insurance coverages typically don't have a deductible:
- Personal liability coverage (Coverage E)
- Medical payments to others (Coverage F)
- Added insurance riders or scheduled items, such as a wedding or engagement ring
Loss of use coverage (Coverage D) might have a deductible, depending on your insurer and policy.
How to choose the right home insurance deductible
Deciding on a deductible comes down to what you can comfortably afford in both the short term and the long term. You may decide a higher deductible is your best option, as it will lower the long-term cost of your premium. Just keep in mind that if you have to file a claim, you'll need to have the funds to cover your higher deductible immediately available.
Do you want to pay less for insurance or repairs?
If you want lower out-of-pocket expenses for unexpected repairs, go with a lower deductible (and higher premium). If you prefer a lower insurance premium, choose a higher deductible, and expect to pay more when you file a claim. Learn how to get cheap homeowners insurance.
How much can you afford to pay out of pocket?
Your deductible should never be higher than what you can afford to pay out of pocket because if you file a claim, you'll be responsible for paying your deductible.
Depending on your state and the insurance company, you might have a separate homeowners insurance deductible for certain perils such as hail or windstorm damage (including tornadoes and hurricanes) and earthquakes.
When do you pay the deductible for homeowners insurance?
Your insurance company will typically subtract your deductible from the total amount of your claim. You would be responsible for the unpaid expenses related to the claim. Learn more about the process for property insurance claims.
Have a question about your home or renters deductible?
If you're a current or new Progressive customer, we can answer questions about your homeowners or renters insurance deductible:
Current Progressive customers
Call us at 1-866-749-7436 and we'll talk through your questions.