Understanding Home Insurance Deductibles: What You Need to Know
At Hanby Insurance, we know homeowners insurance can feel confusing — especially when it comes to deductibles. Your deductible is the amount you pay before insurance helps cover a claim. Understanding how it works helps you plan for unexpected costs and avoid surprises later.
1. Flat vs. Percentage Deductibles
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Flat Deductible: This is a set dollar amount, like $1,000 or $2,500.
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Percentage Deductible: This is based on a percentage of your home’s insured value. For example, if your home is insured for $400,000 and you have a 1% deductible, you’ll pay $4,000 out of pocket.
2. Wind and Hail Deductibles
In Texas, wind and hail claims are common due to frequent storms. Many homeowners policies have a separate deductible for these perils. This deductible is usually a percentage of your home’s insured value. It applies each time you file a claim, not once per year. Knowing this helps you prepare for possible storm damage expenses.
Wind and hail deductibles also tend to be higher than your deductible for other perils such as fire, theft, or water damage. If you’re concerned about that cost, there are special insurance policies designed to help cover or reduce your wind and hail deductible.
You can read more about those options here.
3. Special Deductibles
Some policies include special deductibles for unique types of damage:
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Hurricane Deductible: Applies when a storm is officially classified as a hurricane.
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Water Backup Deductible: Covers damage from water backing up through drains or sump pumps. It usually has its own limit and deductible.
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Scheduled Articles: High-value items like jewelry or artwork may have no deductible or a separate one, depending on your policy.
The Bottom Line
Your deductible plays a big role in how your insurance works. Choosing the right amount helps balance your coverage and out-of-pocket cost. Review your policy each year, especially if you live in an area prone to severe weather.
At Hanby Insurance, we’re here to make things simple. We’ll help you understand your options and choose coverage that protects what matters most.