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.

Runs entirely in your browser: nothing you enter is sent or stored by this site. Results are estimates for planning, not a quote or advice.

A higher deductible lowers your premium and raises what you pay on every claim. The calculator tells you how many claim-free years it takes for the savings to cover one extra deductible, and which option is cheaper at the claim rate you expect.

How to use it

Ask your agent or insurer to price two deductibles on the same policy, same coverages, same renewal date. Comparing quotes from different insurers mixes in other differences. Enter:

  • The lower deductible and its annual premium. Both are on your declarations page.
  • The higher deductible and its annual premium, from the quote.
  • The claims you expect per year as a decimal. The default, 0.05, means one claim every 20 years.
  • Optionally, the savings you could spend on a deductible tomorrow.

The second deductible has to be higher than the first, or the tool asks you to correct it.

How the math works

The yearly saving is the lower-deductible premium minus the higher-deductible premium. The extra cost per claim is the difference between the deductibles. Break-even is the second divided by the first. Expected yearly cost for each option is its premium plus the claim rate times its deductible; the lower number wins.

Say, hypothetically, a $1,000 deductible at $2,400 a year against $2,500 at $2,150. The higher deductible saves $250 a year and costs $1,500 more per claim, so break-even is 6.0 claim-free years. At 0.05 claims a year, the $1,000 option costs $2,400 plus $50, or $2,450 expected; the $2,500 option costs $2,150 plus $125, or $2,275. The higher deductible comes out about $175 a year ahead. If your savings were $1,800, the tool would also warn that you could not cover the $2,500 deductible.

What it assumes

Every figure is one you supply or an editable example. The 0.05 claim rate is a placeholder. For scale, the Insurance Information Institute, using ISO data, reports 5.33 claims per 100 insured house-years for 2023 (homeowners multiple peril policies, excluding Alaska, Texas and Puerto Rico), so 0.05 sits near the national average. Your roof age, claims history, region and the cause of loss matter more than the average. The tool does not assume a premium surcharge or any discount loss; see Should I file a homeowners claim? for that side of the decision.

Where it stops being right

Three limits are worth knowing. First, the expected-cost comparison charges you the full difference between the deductibles on every claim, which assumes every loss is bigger than the higher deductible. A $1,800 loss costs you $1,800 with the higher deductible but only $1,000 with the lower one, so the real extra cost on small claims is less than the tool shows. Second, it covers the all-other-perils deductible only. Wind, hail, hurricane and earthquake deductibles are usually separate percentages; use the hurricane and percentage deductible calculator for those. Third, premium credits for a higher deductible vary by insurer and do not rise in a straight line, so get both prices quoted rather than estimating the second.

The break-even also ignores that people file fewer small claims when the deductible is high, which can help preserve a claims-free discount. The practical test is simple: pick the deductible you could pay from savings the day after a loss. how homeowners insurance deductibles work and should you raise your deductible to lower your premium? cover the trade-offs in more depth.

Last reviewed October 10, 2026

Related guides

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. Should you raise your deductible to lower your premium? Raising your deductible pays when the saving is large for the added risk and you could cover the gap in cash. How to run the break-even and where to stop. Will a claim raise your homeowners premium? Often, but not always. What decides whether a claim moves your rate or your renewal, which claims some states shield, and how to ask before you file. Claims-free discounts and when to skip a small claim How claims-free discounts are earned and lost, what a claim leaves on your CLUE record, and a way to weigh a small payout against the long-term cost. Ways to lower your homeowners insurance without gutting coverage A ranked list of the levers that cut a homeowners premium without weakening the policy: shopping, deductibles, record fixes, discounts, mitigation and billing.

Terms used here

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. 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. 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. Surcharge An extra amount added to a premium because of a specific risk factor, claim history or state-required assessment, usually shown apart from the base rate. Claims-free discount A premium credit for homeowners with no paid claims over a set number of recent years, verified from the insurer's records and claims history reports.

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