When shopping for homeowners insurance, it's helpful to know the general home insurance deductible average. In insurance, a deductible is the amount of money you're responsible for paying before you can use your policy's coverage.
Understanding the basics of how deductibles work from one insurance company to the next will help you in choosing a policy and provider. Here are the basics to know:
Homeowners insurance deductibles are either a flat dollar amount or a percentage. The average dollar amount generally ranges from $500 to $2000, and the percentages between 1% and 5%.
You can pay higher than the minimum deductible if you prefer. This can help lower your rates and regular expenses.
Your homeowners insurance deductible determines how much you need to pay out of pocket. This amount is adjusted based on a claim filed versus the amount you pay in premiums.
If you have an emergency fund, you might prefer a higher deductible amount with lower premiums. While you'll need to pay more for a claim, your savings will ease the financial burden.
The average price for homeowners insurance can fluctuate. Choosing a higher deductible can help reduce your premiums by up to 6%.
However, the maximum you save by choosing the deductible is different for each insurance company. Make sure to go over all the details with your chosen provider to get the best possible coverage for your needs.
I’m Mike Manning, founder of Manning Realty Services. I’m a California native who grew up in the Blossom Valley. I attended Oak Grove High School and graduated from San Jose State with a degree in Industrial Technology, emphasizing Design and Technical Drawing. My professional journey began at National Semiconductor, where I worked for 15 years as a Mask Layout Design Specialist.
In 2006, I earned my Real Estate Broker's license and found my true passion in helping people find their dream homes and securing contracts for my clients. Since then, I've been dedicated to making the home buying process as smooth and satisfying as possible.