Ask Bob Insurance What is a deductible and how does it work?

What is a deductible and how does it work?

By Bob Millaway, South Jersey Community Expert & REALTOR®

A deductible is the amount you pay out of pocket before your insurance coverage kicks in. If your home suffers $10,000 in damage and your deductible is $1,000, your insurer pays $9,000. Higher deductibles mean lower premiums but more out-of-pocket cost when you file a claim. Some policies have separate deductibles for wind, hail, or hurricane damage. Choose a deductible you can comfortably afford to pay if an unexpected loss occurs.

Why It Matters

Your deductible directly affects both your premium cost and your out-of-pocket expense after a claim. The right balance saves money without creating financial strain.

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