What is Deductible? Home Insurance Vocabular

Blogs

Latest Reviews About Our Roofing Company

Write a review about your Roofing Company
review from zac magal about our roofing companyzac magal Feb 01, 2022
Highly recommended due to their professional work ethic, prompt response and attention to detail. The work was completed on time, hassle free and exceeded the quality criteria I was expecting.Read completely
review from Yulia Petrova (Yulia) about our roofing companyYulia Petrova (Yulia) Sep 25, 2021
Quickly fixed the fence gate. They did it very professionally.Read completely
review from America life about our roofing companyAmerica life May 28, 2021
Mr. Fish and his team at ARR have done an excellent job in the renovation of our home. They have remediated and renovated our home to restore it back and now looks even better than before..Read completely
Read all reviews about our roofing company What is Deductible? Home Insurance Vocabular

What is Deductible? Home Insurance Vocabulary.

A deductible is the amount of money included in an insurance contract that you are responsible for paying when seeking insurance coverage and before the insurance company will start processing your claim. It is the way in which risk is shared between you, the policyholder, and your insurer. In this case, you kind of reimburse yourself for your loss. The amount of money you paid is subtracted, or deducted, from your claim. Moreover, the larger the deductible, the lower the premium for an insurance policy. For example, if your policy includes a $500 deductible and your insurer had estimated your loss is worth $10,000, you would pay a $500 deductible before you receive a claim check for $9,500. Percentage deductibles are calculated based on the home’s insured value. So, if your house is insured for $100,000 and your insurance policy has a 2 percent deductible, $2,000 would be deducted from any claim payment. If the adjuster estimated a $10,000 insurance loss, you would be paid $8,000. In the event of a $25,000 loss, your claim reimbursement of $23,000.

How Much Is the Deductible?

As your insurance policy is regulated by the state, you should ask your agent about your state laws. Your deductible should be stated in the terms and conditions of your contract.

Who Decides How Much the Deductible Will Be?

As your insurance policy is regulated by the state, you should ask your agent about your state laws. Your deductible should be stated in the terms and conditions of your contract. However, you, the insured, usually can choose how much of a deductible you will pay. The higher the deductible is, the lower the cost of your insurance will be. As a consequence, the higher the amount of risk you are willing to take by being ready to pay the deductible, the less risk for the insurance company. Therefore, your premium is reduced.

Hurricane deductibles may apply for homeowner’s insurance claims living in hurricane-prone states. Hurricane deductibles are generally higher than other homeowner’s policy deductibles.

Wind/hail deductibles are usually covered by standard homeowner’s insurance.

Flood insurance offers various deductibles available in dollar amounts or percentages. The amount varies by states and companies.

Earthquake insurance usually offers percentage deductibles ranging from 2 percent to 20 percent of the roof replacement value of your home. The higher the risk of earthquakes, the less the deductible.

Try our calculator services:
roofing calculator
fence calculator
gutter calculator