How Does Your Homeowners Deductible Work?

When something goes wrong at home, like a broken pipe, storm damage or even theft, your homeowners insurance can help. However, you’ll likely need to pay a deductible before your coverage kicks in. Understanding how this part of your policy works is an essential step for homeowners in Woodstock, Georgia, looking to avoid surprises during a claim.

What is a Deductible and When Does It Apply?

A deductible is the amount you agree to pay out of pocket before your insurance begins to cover remaining losses up to your policy’s limits. For example, if your deductible is $1,500 and your covered loss totals $6,000, your insurer may contribute the remaining $4,500 after you meet your share.

Deductibles typically apply to claims involving damage or loss to your property. That includes events like fire, certain types of water damage or wind-related destruction. The specific amount you pay will depend on what’s listed in your policy, and in some areas—including parts of Georgia—different deductibles may apply for specific risks like hurricanes or hail.

Choosing the Right Deductible for Your Budget

Homeowners insurance policies often offer a range of deductible options. A higher deductible usually leads to a lower monthly premium, but it also means more out-of-pocket expense if a claim is filed. On the other hand, a lower deductible could reduce that expense at claim time but may cost more per month.

Some homeowners opt for a higher deductible to save on premiums, especially if they feel confident about handling smaller repairs on their own. Others prefer the predictability of a lower deductible, even if it raises the cost of coverage slightly.

Learn More

Kris D Rogers & Associates in Woodstock, Georgia, can help you review your current homeowners policy and walk you through how your deductible applies in real-world scenarios. If it’s been a while since you’ve looked at your coverage, now might be a good time to contact us and revisit what works for your home and budget.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.