Is there a deductible for home insurance?
Short answer. Yes, every standard homeowners policy has a deductible, the amount you pay toward each covered property loss before the insurer pays. Common choices run from about $500 to $2,500 or more, and many Georgia policies add a separate wind and hail deductible set as a percentage of the dwelling coverage. You choose the deductible when you buy or renew the policy.
How the deductible is set
- You pick it. When you buy or renew, you choose from the options the insurer offers. A higher deductible lowers the premium.
- The insurer may require a minimum. In areas with frequent hail, wind and hail deductibles may start at a percentage rather than a flat amount.
- It can change at renewal. Check each new declarations page; insurers sometimes change deductible terms.
What it means on a roof claim
Suppose hail damage costs $15,000 to repair and your wind and hail deductible is $3,000. The insurer pays $12,000, possibly in two checks, and you pay $3,000 toward the roof. If the damage were $2,500, the insurer would pay nothing.
What it does not apply to
Liability coverage and medical payments to others generally carry no deductible. The deductible is for property damage.
Things to know before a storm
- Know the dollar amount of your wind and hail deductible, not just the percentage.
- Keep enough savings, or a financing plan, to cover it.
- In Georgia, no contractor can legally waive or pay it for you.
Read next: percentage wind and hail deductibles, can a roofer pay your deductible and roof replacement coverage.