When shopping for homeowners insurance, it's helpful to know the general home insurance deductible average. In insurance, a deductible is the amount of money you're responsible for paying before you can use your policy's coverage.
Understanding the basics of how deductibles work from one insurance company to the next will help you in choosing a policy and provider. Here are the basics to know:
What is the standard deductible for homeowners insurance?
Homeowners insurance deductibles are either a flat dollar amount or a percentage. The average dollar amount generally ranges from $500 to $2000, and the percentages between 1% and 5%.
You can pay higher than the minimum deductible if you prefer. This can help lower your rates and regular expenses.
What are home insurance deductions?
Your homeowners insurance deductible determines how much you need to pay out of pocket. This amount is adjusted based on a claim filed versus the amount you pay in premiums.
If you have an emergency fund, you might prefer a higher deductible amount with lower premiums. While you'll need to pay more for a claim, your savings will ease the financial burden.
How your homeowners insurance deductible affects your rates
The average price for homeowners insurance can fluctuate. Choosing a higher deductible can help reduce your premiums by up to 6%.
However, the maximum you save by choosing the deductible is different for each insurance company. Make sure to go over all the details with your chosen provider to get the best possible coverage for your needs.
About the Author
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
