How much are homeowners insurance deductibles, and why do they exist?
Two kinds of deductible
- Flat, for all other perils. A set dollar figure that applies to most claims, such as a kitchen fire or a burst pipe.
- Percentage, for wind and hail or named storms. A percentage of your Coverage A dwelling limit. With a $400,000 dwelling limit, a 1 percent deductible is $4,000 and 2 percent is $8,000. Many policies, including many in Georgia, carry a separate wind and hail deductible, so a hail claim can have a much higher deductible than a fire.
Why deductibles exist
They keep small, frequent losses out of the claims system, which lowers costs, and they give owners a reason to maintain the home. Choosing a higher deductible lowers your premium, but you take on more of each loss.
How it is applied on a roof claim
The deductible is subtracted from the claim payment. You then pay it to your contractor as part of the job price. In Georgia, a contractor cannot waive, absorb, or rebate your deductible, so a roofer who offers to cover it is offering something illegal.
Find yours
Your declarations page lists each deductible. Look for separate lines labeled all other perils, windstorm or hail, or hurricane. If one shows a percentage, multiply it by your dwelling limit to get the real dollar figure.
Related: the percentage wind and hail deductible and whether a roofer can pay your deductible.