Understanding your insurance deductibles

A deductible is the amount you pay toward an insured loss before insurance covers the rest. Higher deductibles usually mean lower premiums. Deductibles can be a fixed dollar amount or a percentage of the insured value, especially for homeowners policies. They apply per claim, except hurricane deductibles in some states. Raising deductibles can reduce premiums but increases out-of-pocket costs. Disaster deductibles vary by event and location, with hurricane, wind/hail, flood, and earthquake policies having specific rules.