Homeowner's Insurance Deductible--Quick Tip

A growing trend in the insurance industry is to place--sometimes mandatory--a wind and hail deductible that is a percentage of the coverage on the structure on homeowners insurance policies. For example:

A house is covered for $200,000
The deductible is $1,000 for all perils except wind and hail, for which there is a 2% deductible.
For a wind or hail claim, the deductible is 2% of $200,000---$4,000.

As you can see, a wind and hail claim might not go so well for you if you had to pay the first $4,000 of it. There are a few insurance companies that force the 2% wind and hail deductible on customers and other companies have it as an option. If possible, this is a good thing to avoid, as it makes the claims potentially so much more expensive for you.

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