A deductible is the amount the homeowner is responsible for paying as part of an insurance claim. The insurance payment is calculated around the policy terms, damage scope, and deductible.
Why It Matters
Homeowners sometimes focus only on the approved claim amount and forget that the deductible is still their responsibility. Understanding it early helps avoid surprises.
Some deductibles are flat fees, such as a set dollar amount. Others are percentage deductibles. Insurance companies are increasingly applying wind and hail deductibles of 1% to 5% of the full dwelling replacement cost, which can be much higher than homeowners expect.
For example, if a home is insured with a $500,000 dwelling replacement cost and the policy has a 2% wind or hail deductible, the deductible may be $10,000. That percentage is typically based on the insured value of the entire home, not just the roof, siding, gutter, or repair amount involved in the claim.
Common Problems
Problems include confusion about percentage deductibles, storm deductibles, multiple deductibles, and misleading promises about making deductibles disappear. Homeowners should confirm their deductible with their carrier before starting any claim so they understand the financial responsibility.
Building Codes & Industry Standards
Deductibles are insurance policy terms, not construction standards. However, they affect project finances and should be handled honestly and transparently.
Exterior Echelon Notes
Exterior Echelon encourages homeowners to review deductible questions with their insurance carrier before any claim is made and to keep claim payments, contracts, and project scope clear.
