Home Insurance Deductible Explainer

What is a deductible?

Your deductible is the part of a covered claim you pay before your insurance pays the rest. Choosing a higher deductible usually lowers your premium, but you pay more when you have a claim.

Florida home policies usually have two deductibles:

• All other perils (AOP): a flat dollar amount, such as $1,000 or $2,500, for claims like fire, theft or a burst pipe.
• Hurricane: a percentage of your dwelling coverage, often 2%, 5% or 10%. On a $300,000 home, a 2% hurricane deductible is $6,000.

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Tips for choosing a deductible

• Pick a deductible you could pay from savings tomorrow.
• Know the dollar amount of your hurricane deductible, not just the percentage, and plan savings for it.
• In Florida, the hurricane deductible generally applies once per calendar year, even if more than one hurricane hits.
• Standard home policies do not cover flood. Flood insurance has its own deductible.
• Ask your agent to compare premiums at two or three deductible levels.