Glossary

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.

Also called: percent deductible, percentage-based deductible

A percentage deductible is calculated from your Coverage A (dwelling) limit, not from the size of the claim. Multiply the percentage by the limit and you have the dollar amount you pay first. Say your dwelling limit is $400,000: a 1% deductible is $4,000, 2% is $8,000 and 5% is $20,000. A $15,000 covered hail loss under a 2% deductible pays $7,000.

Because it is tied to the limit, the dollar amount does not shrink on a smaller loss, and it rises if you or your insurer raise Coverage A, including through an inflation adjustment at renewal. Insurers use percentage deductibles mainly for wind-related perils: hurricanes, named storms and hail. Earthquake deductibles are percentage-based too, and usually higher. State law influences which percentages must be offered and what triggers them.

Read the declarations page for the percentage, the perils it applies to and whether it resets each storm or each season, then convert it to dollars and ask yourself if you could pay that amount tomorrow.

Our guide on how a 2% deductible really works gives more examples, and the hurricane and percentage deductible calculator does the math for your own limit.

Last reviewed October 10, 2026

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Related terms

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. 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. Named storm deductible A separate amount you pay first, often a percentage of the dwelling limit, when damage comes from any storm the National Hurricane Center has named. Earthquake deductible The share of the insured value you pay before earthquake coverage responds, expressed as a percentage that is far higher than a regular home deductible. Dwelling coverage (Coverage A) The part of a homeowners policy that pays to repair or rebuild the house itself, including attached structures such as a garage, porch or deck.

Related guides

The California Earthquake Authority explained What the CEA is, how its policies are sold through your home insurer, what they cover and exclude, how it is funded, and what its limits mean for homeowners. Cutting coverage to save money: the cuts that backfire Which coverage cuts save a few hundred dollars and cost thousands at claim time: low dwelling limits, ACV roofs, skipped endorsements and oversized deductibles. Earthquake deductibles: why they're so high Earthquake deductibles are a percentage of your dwelling limit, 5% to 25% at the CEA. Why they run that high, how they are applied, and how to choose one. Earthquake insurance explained Homeowners policies exclude earthquake damage. How earthquake coverage is sold, what it pays and leaves out, why deductibles run 2% to 25%, and who needs it. Hawaii's home insurance market after Lahaina How the 2023 Maui wildfire, separate hurricane policies, lava-zone limits and the HPIA shape Hawaii home insurance, per the Insurance Division and NAIC. How homeowners insurance deductibles work A deductible is the part of a covered loss you pay before the insurer does. How flat and percentage deductibles work, when each applies and how to size yours.

Related insurers

Farm Bureau Financial Services West Des Moines Farm Bureau insurer selling home insurance through exclusive agents in eight states, with a published roof payment schedule; #2 in Iowa. Georgia Farm Bureau Insurance Macon-based mutual that sells home, farm and auto insurance only in Georgia, to Farm Bureau members, through agents in 158 of the state's 159 counties.

Related tools

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. Hurricane and percentage deductible calculator Turn a hurricane, wind and hail, or earthquake percentage deductible into dollars and see what you and the insurer would each pay on a sample loss. Homeowners quote comparison worksheet Enter up to five homeowners quotes in columns and see where the coverage differs, so the cheapest price is not just the least coverage.