How does my homeowners deductible apply to a claim?

A deductible is the portion of a covered loss that you are responsible for paying before your insurance carrier contributes. For example, if your policy has a $2,500 deductible and a covered wind event causes $18,000 in roof damage, your carrier would pay $15,500 and you would be responsible for the remaining $2,500. The deductible applies per occurrence, meaning it resets with each separate claim event.

Most homeowners policies carry a standard dollar-amount deductible for general covered losses, and that amount is chosen when you purchase or renew the policy. Selecting a higher deductible typically lowers your annual premium, while a lower deductible means higher premium costs. There is a real financial trade-off involved, and it is worth thinking through your ability to cover the deductible amount out of pocket in the event of a loss.

In states that experience significant storm activity, including Georgia, many carriers also apply a separate deductible specifically for wind and hail damage. This deductible is often expressed as a percentage of the insured value of the home rather than a flat dollar amount. On a home insured for $400,000 with a 1 percent wind and hail deductible, for instance, the deductible for a wind event would be $4,000. Percentage-based deductibles can be substantially higher than standard deductibles, so policyholders should review their declarations page carefully to understand what applies to which type of event.

The deductible is not something you pay directly to the carrier. Instead, it is deducted from the claim settlement amount. If your claim payment does not exceed your deductible, the carrier will not issue a payment, though the claim may still be recorded on your loss history. Reviewing your declarations page before a storm season is a simple way to avoid surprises when you need to file.