Glossary

Deductible

The amount of a covered property loss you pay yourself before the insurer pays the rest, shown on your declarations page as a dollar figure or a percentage.

Also called: policy deductible, flat deductible

A deductible is the portion of a covered property loss that you absorb before the policy pays. Under the standard ISO form, the insurer pays only the part of the total Section I loss that exceeds the deductible on your declarations page, subject to the policy limit. It applies to property coverages, not to liability or medical payments to others.

Say your deductible is $1,500 and a burst pipe causes $9,000 of covered damage. The policy pays $7,500. If the covered loss is $1,200, it pays nothing, which is why small claims are often not worth filing. The deductible applies per loss, so two separate storms in one year each carry their own.

Most policies use a flat-dollar all other perils deductible for everyday losses, and many add a separate percentage deductible for wind, hail or named storms. A higher deductible lowers your premium, but only helps if you could comfortably pay it on the worst day.

To test the trade-off, try the homeowners deductible break-even calculator, or read our guide to how deductibles work.

Last reviewed October 10, 2026

In the index now

Related terms

Percentage deductible The share of your insured dwelling limit, rather than a fixed dollar figure, that you pay first on a loss, commonly 1% to 5% for wind, hail or hurricane damage. All other perils deductible The basic amount you pay first on covered losses not subject to a separate wind, hail, hurricane or earthquake figure, listed on your declarations page. Hurricane deductible A separate amount you pay first, usually a percentage of the dwelling limit, that applies to wind damage from a hurricane in place of your regular flat amount. Wind/hail deductible A separate amount you pay first, flat or a percentage of the dwelling limit, on damage from wind or hail in place of the standard flat amount. Declarations page The summary page at the front of a policy listing the insured, the property, policy dates, limits, deductibles, premium, mortgage lender and attached forms. Premium The price of a policy for its term, set by rebuilding cost, location, claims history, roof, deductible and other rating factors.

Related guides

Your annual homeowners insurance review Compare this year's renewal declarations page with last year's, recheck your rebuild cost and discounts, and decide whether to shop. A step-by-step review. Appliance and HVAC breakdown: insurance or warranty? Homeowners insurance excludes a furnace or dishwasher that simply fails but pays for the water, fire or smoke damage it causes. Who pays for what. Washing machine, water heater and dishwasher leaks A sudden appliance leak is usually covered for the water damage and tear-out, but not for the failed appliance. Where slow leaks, drains and wear change that. Assignment of benefits: what to know before you sign What an assignment of benefits gives a contractor, what you give up, how it differs from a direction to pay, and how Florida and other states treat it. Bundling home and auto insurance: when it pays A bundle pays only if the combined price beats the cheapest separate policies at equal coverage. How multi-policy discounts work, and Texas's 2025 ban on tying. Burst and frozen pipes: what's covered A burst pipe is usually covered if you kept the heat on or drained the system. What reasonable care means, how vacancy affects a claim, and the first hour.

Related insurers

Norfolk & Dedham Group and Union Mutual Two old New England mutuals, Norfolk & Dedham (1825) and Union Mutual of Vermont (1874), affiliated in 2024 and sold through independent agents in eight states.

Related tools

Home and auto bundle savings calculator Check a home and auto bundle discount against the same company's separate prices and against the best separate quotes you can find elsewhere. Homeowners deductible break-even calculator Compare two all-perils deductibles: the yearly premium saved, the extra cost per claim, and the number of claim-free years before the higher one pays off. Should I file a homeowners claim? Compare what a claim would pay with the premium increase it might cause, and see when paying a repair yourself costs less than filing.