Does Home Insurance Have A Deductible?

When you purchase insurance, you’ll likely sign a contract that states that you must pay a deductible before your benefits can be used. The deductible is an amount of money that must be paid before a claim can be made using insurance. If you’re wondering whether home insurance policies have a deductible, the answer is yes. 

This is everything you need to know about home insurance deductibles. 

What Is A Home Insurance Deductible?

The homeowners insurance deductible is an amount of money that you must pay before your insurance coverage kicks in. The amount is usually stated in the contract, so you’ll know what your deductibles are before the time to make a claim comes. The amount you must pay for your deductible depends on the terms of your plan and the overall coverage limit. These factors can be decided when you purchase coverage. 

How Do Home Insurance Deductibles Work?

When the insurance company pays a claim, the amount will be equal to the cost of damage minus the amount of the deductible. You don’t pay deductibles like a bill. Instead, the amount is subtracted from the total amount that the insurance company pays you. You pay the difference when a person or company is hired to fix the damage. 

Home Insurance Deductible Example

If your deductible is $500 and you file an insurance claim for $10,000 worth of damage to your roof, your insurance company will pay you $9,500 for that claim. The remaining $500 will be paid by you when the roofing company finishes repairing the damage. 

Find Home Insurance

You can choose your deductibles. The amount you choose for your deductible will impact your overall plan costs. To find the most affordable plan that offers you adequate coverage, work with an insurance agent. 

Get in touch with Insured For Life to find a home insurance policy today. You can reach an agent at 888-989-0079.