When it comes to protecting your home, homeowners insurance is a must. But one key piece of your policy that can greatly affect both your monthly premium and your out-of-pocket costs in the event of a claim is your deductible.
If you’re asking yourself, “What’s a normal deductible for home insurance?”—you’re not alone. At Eugene C. Yates Insurance Agency, we get this question all the time. Here’s a simple breakdown to help you understand your options and choose what’s right for you.
What Is a Deductible?
A deductible is the amount you’re responsible for paying before your insurance coverage kicks in after a covered loss. For example, if you have a $1,000 deductible and $5,000 in damage, your insurance company would pay $4,000, and you’d cover the first $1,000.
Common Deductible Amounts
The most common deductible amounts are:
- $500 – A lower deductible, which typically means higher monthly premiums.
- $1,000 – The standard deductible for most homeowners. It offers a good balance between upfront cost and affordability during a claim.
- $2,500+ – A high deductible that reduces your monthly premiums but increases your out-of-pocket risk.
Percentage-Based Deductibles
In some cases, especially in areas prone to natural disasters (think hurricanes, wildfires, or earthquakes), your deductible may be a percentage of your home’s insured value. These usually range from 1% to 5%.
So, if your home is insured for $300,000 and you have a 2% deductible, you’d be responsible for the first $6,000 of any covered claim.
How to Choose the Right Deductible
When choosing a deductible, ask yourself:
- Could I comfortably afford this amount in the event of a claim?
- Am I looking to lower my monthly premiums?
- Do I live in a high-risk area for natural disasters?
- Are there separate deductibles for certain perils like wind or hail?
Need Help? That’s What We’re Here For!
At Eugene C. Yates Insurance Agency, we take the guesswork out of insurance. We’ll help you find the right deductible and policy to fit your home, lifestyle, and budget. Whether you’re insuring your first home or re-evaluating your current coverage, our experienced agents are just a phone call away.
Get in touch today and let’s make sure you’re covered—smart, simple, and stress-free.