A deductible is what you pay out of pocket before your insurance kicks in on a claim. On a home policy, deductibles commonly range from $1,000 to $10,000 or more. A higher deductible always means a lower premium.
The Break-Even Calculation
The question is whether the premium savings justify the higher out-of-pocket exposure. If raising your deductible from $1,000 to $2,500 saves $200 per year, it takes 7.5 years of claim-free ownership just to break even on that one extra $1,500 you'd owe.
Wind and Hail Deductibles Are Different
Wind and hail deductibles are often separate from the standard deductible and expressed as a percentage of the insured value, typically 1-2%. On a $400,000 home, a 1% wind deductible means you pay $4,000 before coverage kicks in on a storm claim - regardless of what your standard deductible is.
Your agent can pull the specific premium difference between deductible options on your policy and help you decide based on real numbers. The NC Department of Insurance notes that wind and hail deductibles are frequently separate from the standard deductible in North Carolina. Get a free home insurance quote from IronHaven serving Wake Forest, Raleigh, and all of North Carolina.
