All About Insurance Deductibles

Almost all insurance policies – including health insurance, property insurance, and auto insurance – contain information in the policy language about deductibles.

An insurance deductible is the amount of money you must pay out-of-pocket, and the insurance company will pay any costs over your deductible. Insurance deductibles have to be paid before the insurance provider will pay your bills or claims. 

What is an Insurance Deductible for Property Insurance Claims?

A property insurance deductible is the amount of money a homeowner must pay out of pocket before insurance coverage kicks in. When the insurance company pays the claim, it will be for the total amount of the damage minus the amount of the deductible.

You won’t pay your deductible to the insurance company like a bill. Instead, it’s subtracted from the amount the insurance company pays. You pay the deductible to the person or company hired to fix the damage.

For example, if your deductible is $500 and you file an insurance claim for $5,000 worth of damage to the roof of your home, your insurance company will pay you $4,500 for that claim. The remaining $500 (your deductible) will be paid by you, out of pocket, to the roofing company repairing the damage.

How Much Is A Deductible?

Many of the deductibles for property insurance in Colorado are set at $1000.

While every home insurance policy comes with a deductible, you do have some power in choosing the deductible amount. Homeowners insurance companies present their deductibles differently. For instance, you might be able to choose from deductibles of $1,000 or $2,500. Your premium will be lower if you choose a higher deductible, and vice versa.

Alternatively, some companies set the deductible as a percentage of your policy’s coverage levels. For example, let’s say your home is insured up to $300,000 and your deductible is equal to 1% of the coverage limit. Instead of paying a set dollar amount when filing a claim, you would pay 1% of $300,000, which is $3,000.

Percentage-based deductibles are commonly offered for specific types of covered perils. For example, in states or regions where homeowners are more likely to encounter wind damage or hail, insurers often assign these risks a separate percentage-based deductible instead of a flat amount.

What We Do

Arrow Roofing does require clients to pay their deductibles (so we don’t commit insurance fraud), and you can be sure that every dollar goes toward giving you a high-quality, long-lasting finished roof. We will never mislead our customers and we always do our best to be as transparent as possible throughout the entire process.