What does an insurance deductible mean on a homeowners policy?
Short answer. A deductible is the part of each covered loss you pay yourself before insurance pays the rest. The insurer subtracts it from the claim payment, and you pay that amount toward the repair, usually to the contractor. It applies per claim or per storm, not once a year.
How it works on a real roof claim
- Replacement cost of the roof: $18,000
- Depreciation held back on a replacement cost policy: $6,000
- Deductible: $2,000
- First check: $18,000 minus $6,000 minus $2,000 = $10,000
- Second check after the roof is finished: $6,000
- Insurer's total: $16,000. Your share: $2,000.
The contractor's price is still $18,000. The deductible is the $2,000 you contribute. See ACV vs RCV for the two check structure.
Things people get wrong
- You do not mail it to the insurer. It is simply deducted from what they pay.
- It is per loss. Two separate storms can mean two deductibles. One storm that damages the roof, fence and siding is one deductible.
- There may be more than one. Many Georgia policies have a separate wind and hail deductible, often a percentage of the dwelling limit. See percentage deductibles.
- If the damage is less than the deductible, the insurer pays nothing, though the claim may still appear in your claims history.
Why it cannot be skipped
Georgia law makes it illegal for a contractor to waive, absorb or rebate your deductible, because that inflates the claim. A roofer offering to do it is a warning sign.