How do you reach your insurance deductible, and what happens when you do?
Short answer. On a homeowners policy you do not build up to a deductible over time. You reach it within a single claim, when the covered damage from that event is larger than the deductible, and the insurer then pays the amount above it. Damage that looks small at first often grows once gutters, vents, interior damage and code items are counted.
Reaching it in one claim
Every covered loss is measured separately. If the damage from one storm is $9,000 and your deductible is $2,000, you have passed it, and the insurer owes $7,000 less any depreciation held back. If the damage is $1,500, you never reach it on that claim, and small repairs from different storms do not add together.
Why the first look underestimates damage
A homeowner who sees a few missing shingles may assume the damage is under the deductible. A complete inspection often finds more from the same storm:
- Hail hits on the other slopes that are hard to see from the ground
- Dented gutters, downspouts, roof vents and window screens
- Creased shingles that lifted but fell back into place
- Interior water damage to drywall and insulation
- Code-required items that come with any repair or replacement
All damage from one storm belongs in one claim, under one deductible.
What happens once you pass it
- The insurer issues a payment for the covered amount above the deductible, minus any depreciation held back.
- You pay your deductible to the contractor as part of the job price.
- On a replacement cost policy, held-back depreciation is released after the work is finished.
Learn more: after a hail storm checklist, percentage deductibles and recoverable depreciation.