A percentage deductible is a deductible calculated as a percent of your home's insured value instead of a flat dollar amount. It is common for wind, hail, hurricane, and earthquake losses, and it can make your out-of-pocket cost much larger than a standard flat deductible.
The percentage applies to the dwelling limit, not the size of the claim, so it is worth knowing the dollar figure before a storm.
Example: on a home insured for $300,000 with a 2% wind/hail deductible, the deductible is $6,000 (2% of $300,000) before coverage applies, not a flat $1,000.
Related: deductible, wind-hail deductible, earthquake insurance. See the homeowners insurance overview.