What are home insurance deductibles?

A deductible is the amount you pay out of pocket before your insurance coverage kicks in after a claim. Higher deductibles usually mean lower premiums.

Home insurance deductibles are the amount you pay out of pocket before your insurance coverage kicks in after a claim. Typically, a higher deductible will result in lower premiums, but it means you'll pay more if a claim occurs.

If your home sustains water damage due to a burst pipe, and you have a $1,000 deductible, you would need to pay that amount before your insurance covers the remaining costs of repair.

Decide on a deductible that you can comfortably afford. A higher deductible can lower your monthly premiums, but be sure you can cover it if you need to make a claim.