The deductible is the amount you pay out of pocket before insurance coverage kicks in. Typical deductibles range from $1,000 to $2,500. A higher deductible means a lower premium. On a $300,000 home, choosing a $2,500 deductible over $1,000 saves $200 to $400 per year.
What It Means
Your share of a claim. You pay $1,000-$2,500, insurance pays the rest.
Typical Amounts
Standard: $1,000-$2,500. Wind/hail deductible in Texas: typically 1-2% of home value.
Premium Savings
Higher deductible = lower premium. Calculate break-even period for different deductible levels.
How to Choose
Set deductible to an amount you can afford to pay out of pocket in an emergency.