Homeowners Insurance Deductible: What Is It and How Does It Work?

What Is a Homeowners Insurance Deductible?

A home insurance deductible is an amount you must pay after a covered loss before insurance coverage kicks in. The deductible amount you choose for your homeowners policy can affect how much you pay for insurance.

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Updated: 09/11/2025

Read Time: 2 minutes

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Key Takeaways

The right insurance policy helps protect you, your home and your belongings by making sure you only have to pay a portion of the total bill through your home insurance deductible after a covered loss.
There are two main types of deductibles in home insurance policies: a standard deductible and a percentage deductible.
The deductible amount you choose will impact how much you pay for insurance. You’ll be able to pick what best fits your budget with AARP® Home Insurance from The Hartford.¹

How Does a Deductible Work for Home Insurance?

Wondering how does a home insurance deductible work? In homeowners insurance terms, your homeowners insurance deductible is the amount you are responsible for paying out of pocket before your insurance pays the rest after a covered loss. It’s important to know that deductibles vary. If you have a high deductible, you’ll pay less in annual premiums, while a lower deductible will come with higher premiums.

Not every home insurance coverage has a deductible amount.

Coverage Typically With a Deductible	Coverage Typically With No Deductible
Dwelling coverage	Personal liability coverage
Personal property coverage	Loss of use coverage
Other structures coverage	Medical payments coverage

couple happy researching a home insurance deductible online

When Do You Pay the Deductible for Homeowners Insurance?

After your claim is approved, you’ll need to pay your deductible. You will be assigned a claim handler who will help you throughout the entire homeowners insurance claims process. Policyholders consistently give The Hartford high ratings for our claim reporting process.

Home Insurance Deductible Types

As a homeowner, insurance deductibles help provide financial protection. Typically, there are two types of deductibles in home insurance policies. These include a standard deductible and a percentage deductible.

What Is a Standard Homeowners Deductible?

A typical homeowners insurance deductible is a fixed dollar amount that you pay when you file a claim. This means that if you have a $1,000 deductible, then you’ll need to pay $1,000 out of pocket before your insurer pays for the home insurance claim.

What Is a Percentage Deductible on Home Insurance?

A percentage deductible is a specific percentage of your home’s insured value. For example, if your house is insured at $200,000 and you have a percentage deductible of 2%, then you would pay $4,000 for a claim.

It’s important to know that standard home insurance coverages don’t protect your home from every situation. For example, you’ll need to purchase a separate flood insurance policy to get coverage for those scenarios, which may come with its own flood insurance deductible.

couple pleased with their deductible for homeowners insurance from The Hartford

What Is the Normal Deductible for Homeowners Insurance?

While there is no set amount for the average home insurance deductible, it typically ranges from $500 to $2,500. According to the Insurance Information Institute (III), most insurers offer a minimum $1,000 deductible.²

What Deductible for Home Insurance Should I Choose?

When deciding on your deductible, you may consider how it will affect the amount you pay in home insurance premiums. Usually, the higher your deductible, the lower your insurance cost will be per year, but you’ll have to pay more out of pocket after a covered loss.

For example, if you have a $1,000 deductible but $4,000 worth of home repairs after a fire, your insurance provider will pay the $3,000 after you’ve paid the initial $1,000.

The Hartford offers additional benefits to extend your home insurance protection, like replacement cost coverage. Covered personal items that are stolen or damaged will be replaced with a comparable item at today’s value, not depreciated actual cash value.

Get a Homeowners Insurance Quote

It takes time and effort to make a home out of a house. Insurance deductibles can help protect the investment you’ve made in your happy place, offering peace of mind knowing you have financial support if an accident happens.

For questions about specific claims or homeowners insurance deductibles, The Hartford is here to help. Get the coverage you need at a price that fits your budget. Call 877-422-2345 or get a quote online today.