What is a Homeowners Insurance Deductible? (2024)

Your homeowners deductible is what you pay out of your own pocket for a loss or repair that's covered by your policy. Suppose you have a $1,000 deductible for homeowners insurance, and the cost of covered damages comes to $3,000. Your insurance company would subtract your deductible of $1,000 from the total cost of the covered damages and pay out $2,000.

3 min to read

Explore Progressive's editorial standards for Answers articles to find out why you can trust the insurance information you find here.

How does a home insurance deductible work?

Your homeowners insurance deductible will apply for each claim you file. Your insurance company will only pay for covered losses above your deductible. If your home is completely destroyed (resulting in a total loss), your insurer may pay up to the limit of your coverage, minus your homeowners insurance deductible.

What deductible for homeowners insurance is standard?

Homeowners deductibles generally range between $500 and $5,000, depending on your insurer. Keep in mind that your homeowners insurance policy includes several coverages, and not all of them will have a home insurance deductible. Here's the breakdown:

Homeowners insurance coverages that generally have a deductible:

Homeowners insurance coverages that typically don't have a deductible:

Personal liability coverage (Coverage E)
Medical payments to others (Coverage F)
Insurance riders or scheduled items
Loss of use coverage (Coverage D), depending on your insurer or policy

How does a deductible work for renters insurance?

Renters insurance deductibles are applied like homeowners and condo insurance deductibles. If you file a claim on a covered loss, your insurer will pay you the amount above your deductible, up to your policy's limit.

How to choose the right deductible for homeowners insurance

Deciding on a deductible for home insurance comes down to what you can comfortably afford in both the short and long term. You may decide that a higher deductible is your best option, as it will lower the long-term cost of your home insurance premium. Remember that if you have to file a claim, you'll need the funds to cover your higher home insurance deductible immediately available.

Do you want to pay less for insurance or less for repairs?
If you want lower out-of-pocket expenses for unexpected repairs due to a covered loss, 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?
Generally, your deductible shouldn't 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. This may also include damage from tornadoes or damage from hurricanes.
When do you pay the deductible for homeowners insurance?
Your insurance company will typically subtract your home insurance 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.