Claim words
Deductible
The part of the loss you cover yourself before the insurer pays anything.
What it means for your money
It comes off the settlement, not off the bill. If your covered loss is assessed at $12,000 and your deductible is $2,500, the check is $9,500 — you are not invoiced for the difference, it is simply not paid.
For some causes of loss it is a percentage of your dwelling coverage rather than a flat amount, which can be far larger than people expect. A 2% wind deductible on a $400,000 dwelling is $8,000.
Check whether your wind deductible is a percentageWhere the number comes from
On your declarations page. Check whether separate deductibles apply to wind, hail or earthquake — those are often percentages while the standard one is flat.
See this on a real hail claim
- Covered loss, assessed
- $12,000
- Standard deductible
- $2,500
- Settlement
- $9,500
Had this been a 2% wind and hail deductible on a $400,000 dwelling, the deduction would be $8,000 instead of $2,500 for the identical loss.
Deductible sits next to sublimit, peril and actual cash value. They tend to arrive together.
Guides that use this wordHow to read a depreciation schedule from your insurerActual cash value vs replacement cost: what it means for your belongingsHow long does a home insurance claim take?How much personal property coverage do you need?Insurance claim denied? Why it happens and how to appealHow to file a renters insurance claim, step by stepProof of loss: what the form asks for, with a free worksheetWhat to do after a house fire: a checklist for the first 30 daysDoes homeowners insurance cover water damage? What's covered and what isn'tHomeowners insurance coverages A, B, C and D, explainedDoes homeowners insurance cover theft? Limits, valuables and how to claimDoes homeowners insurance cover mold? When it's covered and when it isn'tDoes homeowners insurance cover tree removal? Fallen trees explainedDoes homeowners insurance cover hail damage? Roofs, cars and deductiblesHow much renters insurance do you need? A quick way to work it out
Indemnia builds the itemized list this all gets applied to, with the receipt attached to the line it proves. See how it works.