Why is my insurance deductible so high?
Short answer. Usually because the deductible that applies to your loss is not the flat one you remember. Many Georgia homeowners policies carry a separate wind and hail deductible written as a percentage of the dwelling limit, some insurers raised minimum deductibles at renewal, and a lower premium you picked years ago may have come with a higher deductible.
Find which deductible you are looking at
Pull your current declarations page, not the one from when you bought the policy. Look for every line that says deductible. Most homeowners find two: an all other perils figure, often $1,000 or $2,500, and a windstorm or hail figure that may be written as 1%, 2% or more. Then read the endorsements list for anything titled windstorm or hail deductible, roof surfacing, or roof payment schedule, because those change how roof losses are handled.
The usual reasons it is high
- It is a percentage. Two percent of a $400,000 dwelling limit is $8,000, even if the roof itself costs $16,000 to replace.
- Your insurer changed it at renewal. In hail-prone territories, insurers have raised minimum wind and hail deductibles. The change appears in the renewal packet, which many people never read.
- You traded it for a lower premium. A higher deductible was a reasonable way to cut the bill, until a storm arrived.
- Your dwelling limit grew. Automatic inflation adjustments raise Coverage A every year, and a percentage deductible rises with it.
- You switched insurers. A new policy may have different deductible rules than your old one.
What you can change
- Ask your agent for quotes at lower deductible levels and compare the yearly premium difference to the cash you would save after a storm.
- Ask whether a flat dollar wind and hail deductible is available instead of a percentage.
- Ask about roof credits, such as a newer roof or impact-resistant shingles, that might offset a lower deductible.
- Make the change at renewal, well before storm season. Insurers generally will not lower a deductible for a loss that already happened.
More: percentage wind and hail deductibles and roof payment schedule endorsements.