How do you calculate the deductible for insurance on a home claim?

Flat deductible

If your declarations page shows a $1,500 all other perils deductible, that is the number. A fire or a dead tree falling on the roof costs you $1,500 of the covered loss.

Percentage deductible

Find the dwelling limit, often labeled Coverage A, and multiply:

• $250,000 dwelling limit at 1 percent = $2,500
• $350,000 dwelling limit at 2 percent = $7,000
• $500,000 dwelling limit at 2 percent = $10,000

Many declarations pages print the dollar amount next to the percentage. If yours does not, do the math yourself. Note that dwelling limits often rise at each renewal to keep up with construction costs, so a percentage deductible quietly rises with them.

Putting it into a claim

Say hail damage is estimated at $18,000 to replace the roof, depreciation is $6,000 and the wind and hail deductible is $3,500.

• First payment: $18,000 minus $6,000 minus $3,500 = $8,500
• After the roof is replaced, on a replacement cost policy: the $6,000 is released
• Insurer's total: $14,500. Your share: $3,500.

On an actual cash value policy, the $6,000 is never released, so your share becomes $9,500.

Which deductible applies

Hail and wind claims use the wind and hail deductible when your policy has one. Other causes use the all other perils deductible. All damage from one storm shares a single deductible.

More: percentage wind and hail deductibles, ACV vs RCV and recoverable depreciation.