Let’s get you startedSign in or create an account to view your personalized quotes.
By continuing, you agree to Insurify's Terms & Conditions.

What Is a Deductible in Homeowners Insurance?

Home insurance deductibles typically range from $500 to $2,000.

Danny Smith
Written byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

Featured in

media logo
Katie Powers
Edited byKatie Powers
Photo of an Insurify author
Katie PowersLicensed P&C Agent, Senior Insurance Editor
  • Licensed auto and home insurance agent

  • 4+ years experience in insurance and personal finance editing

  • NPN: 20564519

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo

Updated | Reading time: 4 minutes

Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

A homeowners insurance deductible is the amount you pay out of pocket before your home insurance coverage takes effect after a claim. It’s important to understand your deductible amount, as it’ll affect your insurance premiums and how much you pay after a claim.

Setting a higher deductible will lower your premiums, but you’ll spend more out of pocket after a claim. Having a lower deductible results in higher premiums, but you’ll pay less out of pocket after a claim. The best option for you depends on your needs and financial situation.

Here’s what you need to know about deductibles to help you better understand your homeowners insurance policy.

How home insurance deductibles work

Your home insurance deductible is a set amount of money that you agree upon with your insurer that you’ll pay out of pocket if you file a claim. Your insurance coverage will only kick in once you’ve paid your deductible amount.

For example, if you have a $1,000 deductible and sustain $5,000 in damages, you’ll pay $1,000 and your insurer will pay the remaining $4,000.

Shop for Home Insurance

Insurify partners with top insurers for real quotes

Excellent
4.7 out of 5 based on 11,626 reviews
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate

How to select a home insurance deductible

The average home insurance deductible ranges from $500 to $2,000, but in some cases, you have the option to set your deductible as high as $5,000 or even more. In other cases, you can set your deductible as a percentage of your home’s insured value, though this is less common.[1]

When choosing a deductible, try to find a balance between an affordable monthly premium and a deductible you can pay out of pocket without jeopardizing your budget. Consider your home’s value, what coverage you need, your budget, and what level of risk you’re comfortable with before choosing a deductible amount.

A lower deductible will mean higher monthly home insurance premiums, while a higher deductible will result in lower monthly premiums. If you’re willing to take a slight risk and opt for a higher deductible, you could save money on premiums each month. But if you want to avoid a large out-of-pocket payment, you’ll have to pay slightly higher premiums.

Deductible vs. premium

A premium is the amount you pay your insurer for your insurance coverage. You typically have to pay your premiums monthly, but you can also sometimes pay on an annual basis as well. Your chosen deductible has a direct effect on your premium amount, as it changes how much your insurer is on the hook for in the event of a claim.

Premiums and deductibles are inversely related: A high deductible reduces your premium, and a lower deductible increases your premium. With a lower deductible, your insurer will pay more of the claim, so it offsets the costs by charging you higher premiums. With a higher deductible, your insurer won’t pay as much for the claim, so it lowers your premiums.

Average homeowners insurance cost by deductible

Your homeowners insurance premium depends on the deductible you choose. The tables below show average annual premiums by deductible amount.

The below national rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST. 
State
sort ascsort desc
Average Annual Premium
sort ascsort desc
Hawaii$242
New Hampshire$923
Iowa$956
Vermont$1,048
Washington D.C.$1,108
Delaware$1,159
New Jersey$1,234
Pennsylvania$1,273
Nevada$1,302
New York$1,386
Virginia$1,421
Oregon$1,431
Maine$1,491
New Mexico$1,550
Washington$1,628
West Virginia$1,680
Ohio$1,688
Connecticut$1,734
Wisconsin$1,743
Utah$1,878
California$2,004
Massachusetts$2,011
Idaho$2,015
Michigan$2,054
Maryland$2,098
Arizona$2,170
Minnesota$2,266
Montana$2,352
North Dakota$2,435
Indiana$2,452
Tennessee$2,528
Wyoming$2,554
Illinois$2,615
Florida$2,637
South Carolina$2,731
United States$2,755
South Dakota$2,936
Colorado$3,115
Alabama$3,196
Missouri$3,225
Georgia$3,440
Kentucky$3,448
Mississippi$3,539
North Carolina$3,566
Arkansas$3,668
Kansas$4,037
Texas$4,039
Nebraska$4,861
Oklahoma$4,928
Louisiana$5,991
The below national rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST. 
State
sort ascsort desc
Average Annual Premium
sort ascsort desc
Hawaii$220
New Hampshire$839
Iowa$869
Vermont$952
Washington D.C.$1,007
Delaware$1,054
New Jersey$1,122
Pennsylvania$1,157
Nevada$1,183
New York$1,260
Virginia$1,292
Oregon$1,300
Maine$1,355
New Mexico$1,409
Washington$1,480
West Virginia$1,528
Ohio$1,534
Connecticut$1,576
Wisconsin$1,585
Utah$1,708
California$1,821
Massachusetts$1,828
Idaho$1,832
Michigan$1,867
Maryland$1,907
Arizona$1,973
Minnesota$2,060
Montana$2,138
North Dakota$2,214
Indiana$2,229
Tennessee$2,298
Wyoming$2,322
Illinois$2,377
Florida$2,397
South Carolina$2,483
United States$2,505
South Dakota$2,669
Colorado$2,832
Alabama$2,905
Missouri$2,932
Georgia$3,127
Kentucky$3,134
Mississippi$3,217
North Carolina$3,242
Arkansas$3,335
Kansas$3,670
Texas$3,672
Nebraska$4,419
Oklahoma$4,480
Louisiana$5,447
The below national rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST. 
State
sort ascsort desc
Average Annual Premium
sort ascsort desc
Wyoming$289
Maine$851
Vermont$973
Montana$1,064
New Jersey$1,117
South Dakota$1,155
Washington D.C.$1,238
Pennsylvania$1,243
Washington$1,280
Wisconsin$1,355
Delaware$1,357
New York$1,380
Massachusetts$1,400
Nevada$1,419
Oregon$1,450
Virginia$1,472
Maryland$1,586
West Virginia$1,634
New Hampshire$1,651
Utah$1,653
Idaho$1,740
Ohio$1,874
Hawaii$1,895
Minnesota$1,929
Indiana$2,008
Illinois$2,059
Arizona$2,108
Connecticut$2,299
Michigan$2,309
Georgia$2,324
South Carolina$2,460
Iowa$2,486
California$2,509
Colorado$2,538
North Dakota$2,566
Arkansas$2,568
United States$2,579
Mississippi$2,744
Nebraska$2,818
Missouri$2,847
North Carolina$2,850
Tennessee$2,965
New Mexico$3,123
Alabama$3,162
Kentucky$3,204
Kansas$3,398
Texas$4,424
Oklahoma$4,753
Louisiana$5,608
Florida$5,689
The below national rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST. 
State
sort ascsort desc
Average Annual Premium
sort ascsort desc
Hawaii$187
New Hampshire$714
Iowa$739
Vermont$809
Washington D.C.$856
Delaware$896
New Jersey$953
Pennsylvania$983
Nevada$1,006
New York$1,071
Virginia$1,098
Oregon$1,105
Maine$1,152
New Mexico$1,198
Washington$1,258
West Virginia$1,298
Ohio$1,304
Connecticut$1,340
Wisconsin$1,347
Utah$1,452
California$1,548
Massachusetts$1,554
Idaho$1,557
Michigan$1,587
Maryland$1,621
Arizona$1,677
Minnesota$1,751
Montana$1,818
North Dakota$1,882
Indiana$1,895
Tennessee$1,953
Wyoming$1,974
Illinois$2,021
Florida$2,037
South Carolina$2,111
United States$2,129
South Dakota$2,269
Colorado$2,407
Alabama$2,470
Missouri$2,492
Georgia$2,658
Kentucky$2,664
Mississippi$2,735
North Carolina$2,756
Arkansas$2,835
Kansas$3,120
Texas$3,121
Nebraska$3,756
Oklahoma$3,808
Louisiana$4,630
The below national rates are estimated rates current as of: Sunday, February 1 at 11:00 AM PST. 
State
sort ascsort desc
Average Annual Premium
sort ascsort desc
Hawaii$176
New Hampshire$672
Iowa$695
Vermont$762
Washington D.C.$806
Delaware$843
New Jersey$897
Pennsylvania$926
Nevada$947
New York$1,008
Virginia$1,033
Oregon$1,040
Maine$1,084
New Mexico$1,127
Washington$1,184
West Virginia$1,222
Ohio$1,227
Connecticut$1,261
Wisconsin$1,268
Utah$1,366
California$1,457
Massachusetts$1,462
Idaho$1,465
Michigan$1,494
Maryland$1,526
Arizona$1,578
Minnesota$1,648
Montana$1,711
North Dakota$1,771
Indiana$1,783
Tennessee$1,838
Wyoming$1,857
Illinois$1,902
Florida$1,918
South Carolina$1,986
United States$2,004
South Dakota$2,135
Colorado$2,266
Alabama$2,324
Missouri$2,346
Georgia$2,502
Kentucky$2,507
Mississippi$2,574
North Carolina$2,594
Arkansas$2,668
Kansas$2,936
Texas$2,937
Nebraska$3,535
Oklahoma$3,584
Louisiana$4,357

Types of deductibles

Home insurance companies generally offer two types of deductibles: dollar-amount and percentage-based. Dollar-amount deductibles are the more common of the two. This kind of deductible is a specific dollar amount — typically between $500 and $2,000 — that you pay before your coverage kicks in. It applies to just about all home insurance claims your home insurance policy covers, such as fire or theft.

A percentage-based deductible has a set percentage of your home’s insured value. If you have a 2% deductible on a $300,000 home, your deductible amount would be $6,000. Percentage deductibles are more common in areas prone to severe weather and storms, where risks are higher and damage is more costly. If you’re unsure whether this type of deductible is right for you, talk to an insurance agent.

Learn More: How to File a Home Insurance Claim

Learn More: How to File a Home Insurance Claim

What is a disaster deductible?

While homeowners insurance covers many perils, your regular deductible won’t apply for certain damages. For these cases, insurers offer special deductibles that pertain to specific natural disasters that can do extreme property damage, including the following:

  • illustration card https://a.storyblok.com/f/162273/150x150/bc1c474c28/weather-96x96-yellow_045-thunder.svg

    Hurricane

    Hurricane deductibles are typically percentage-based and range anywhere from 1% to 5% of your home’s insured value. These are common in hurricane-prone coastal states and any areas that see severe hurricane damage.

  • illustration card https://a.storyblok.com/f/162273/x/68ed522f01/windstorm-and-hail.svg

    Wind and hail

    A wind and hail deductible can be dollar-amount or percentage-based. Windstorm and hail deductibles are more common in tornado-prone areas and coastal areas that see a lot of severe storms and hail damage.

  • illustration card https://a.storyblok.com/f/162273/150x150/0194b78427/weather-96x96-orange_043-flood.svg

    Flood

    Flood deductibles are typically dollar-amount deductibles. They often accompany flood insurance policies required in some states at high risk for flooding. You can procure flood insurance through private insurers and the National Flood Insurance Program (NFIP).

  • illustration card https://a.storyblok.com/f/162273/x/a0c151e1ba/accidental-tearing-apart-cracking-etc.svg

    Earthquake

    Earthquake deductibles accompany earthquake insurance policies and are typically percentage-based deductibles. They’re most common in earthquake-prone areas like California.[2]

When do you pay your deductible?

You pay your deductible after your insurer approves your submitted claim. Paying your deductible doesn’t typically require you to write a check. Your insurance company simply subtracts your deductible amount from its claim payout.

For instance, if you have $5,000 worth of damage and your deductible is $500, your insurer will send you $4,500. Exactly when you receive your claim payment can vary, but your insurer will typically pay it by the start of repair work.

Compare Home Insurance Rates

Unlock savings and discounts when you compare through Insurify

Excellent
4.7 out of 5 based on 11,626 reviews
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate

Homeowners insurance deductible FAQs

The following information can help answer your remaining questions about how homeowners insurance deductibles work.

  • What is the normal deductible for homeowners insurance?

    The standard deductible for home insurance ranges from $500 to $2,000. A $1,000 deductible is one of the most common deductible options.

  • Is a $2,500 deductible good for home insurance?

    A $2,500 deductible can be good for home insurance if you want to have lower monthly premiums. But you need to make sure you can afford to pay $2,500 out of pocket in the event of a claim before setting a deductible this high.

  • Is a $1,000 deductible good for homeowners insurance?

    Yes. A $1,000 deductible is a good, balanced option for your homeowners policy. It’s a reasonably manageable amount to pay out of pocket in the event of a claim, and it’ll yield you moderate monthly premiums.

  • Is it better to have a $500 deductible or $1,000?

    It depends on your risk level and financial situation. A $500 deductible will result in lower out-of-pocket expenses after a claim, but you’ll pay higher monthly premiums. A $1,000 deductible will lower your homeowners insurance premiums, but you’ll pay more out of pocket after a covered loss. Consider your finances and the likelihood of filing a claim when choosing your deductible amount.

  • Should you file a claim even if your costs don’t exceed your deductible?

    No. If your repair costs don’t exceed your deductible, you shouldn’t file a claim, as your insurance coverage won’t kick in. Filing a claim can actually be harmful, as your insurer may raise your rates due to a perceived increase in risk.[3]

Methodology

Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.

Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:

Default Coverage Assumptions

  • Dwelling coverage: $300,000
  • Deductible: $1,000
  • Personal property limit: $25,000
  • Liability limit: $300,000

Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.

Sources

  1. Liberty Mutual Insurance. "Home Insurance Deductibles: Frequently asked questions (FAQs)."
  2. Insurance Information Institute. "Understanding your insurance deductibles."
  3. Insurance Information Institute. "How to file a homeowners claim."
Danny Smith
Danny Smith

Danny is a Brooklyn-based writer with a producer’s license for property and casualty insurance. A former editor at Insurify, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.

Danny has been a contributor at Insurify since March 2022.

Katie Powers
Edited byKatie PowersLicensed P&C Agent, Senior Insurance Editor
Photo of an Insurify author
Katie PowersLicensed P&C Agent, Senior Insurance Editor
  • Licensed auto and home insurance agent

  • 4+ years experience in insurance and personal finance editing

  • NPN: 20564519

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo

Compare Home Insurance Quotes Instantly

Excellent
4.7 out of 5 based on 11,626 reviews
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate