When choosing a home insurance deductible, consider how much you can afford to pay out of pocket if you need to file a claim, and balance that with what you want to pay in premiums. A higher deductible means lower premiums, and vice versa.
Last updated: Aug 12, 2024 Compare quotes in less than 5 minutes
Written by Peter Andrew
Data checked by Brent Buell
Before joining QuinStreet, Brent worked for nearly four years at NYCM Insurance (a personal and commercial insurance carrier based in New York) between his roles as a product analyst and a commercial lines underwriter. Before joining NYCM, Brent owned and operated a captive insurance agency. He holds a property & casualty broker's license and is a Chartered Property Casualty Underwriter (CPCU).
Reviewed by Leslie Kasperowicz
Leslie Kasperowicz is an insurance expert with four years of direct agency experience and over a decade of creating educational content to help insurance shoppers make confident, informed decisions.
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A homeowners insurance deductible is the amount you will have to pay out of pocket if you file a claim; your insurance company will deduct this amount from your settlement check. Common deductible amounts range from $500 to $2,500, although some companies may offer higher deductibles, or even deductibles that are a percentage of your dwelling coverage.
You will have the option to select a deductible when you buy a homeowners insurance policy, and you can change it at any time. A higher deductible will lower your premium, while a lower deductible will raise it.
To choose the right deductible, it’s important to balance the cost of annual premiums with what you can afford to pay out of pocket in the event of a claim.
The best deductible for homeowners insurance often depends on your financial situation. To choose a deductible, consider a few factors:
Remember, you can change your deductible at any time if your financial situation changes. Select the one that makes the most sense for you right now and change it if necessary.
| You should consider a higher deductible if: | You should consider a lower deductible if: |
|---|---|
| You prefer to pay lower premiums upfront | You don’t have the savings to pay a larger deductible if you need to file a claim |
| You can afford to pay a larger deductible if you need to file a claim | You live in an area at a high risk of severe weather or other risk of loss |
| You can handle paying for minor repairs to your home or to replace personal property | You’d rather pay more in premiums to know that you’ll pay less out of pocket if you file a claim |
Depending on your insurance company and coverage, increasing your deductible can reduce your payments by between 20% and 40%.
An Insurance.com rate analysis of how much you can save in every state by hiking your homeowners deductible shows homeowners can trim an average of $512 off their premium by increasing a $500 deductible to $2,500.
Oklahoma homeowners, who pay the most for home insurance nationwide, save the most by increasing their deductibles from $500 to $2,500. They can save an average of $1,228 each year. The smallest savings is in Maryland, at only $74.
Below, you can see the average cost of a home insurance policy in your state at various deductibles. Rates are based on a policy with $300,000 in dwelling coverage and liability.
| State | $500 | $1,000 | $2,000 | $2,500 | $3,000 | $4,000 | $5,000 |
|---|---|---|---|---|---|---|---|
| Alaska | $1,686 | $1,573 | $1,425 | $1,395 | $1,332 | $1,244 | $1,221 |
| Alabama | $3,034 | $2,853 | $2,549 | $2,541 | $2,460 | $2,173 | $2,149 |
| Arkansas | $4,327 | $4,077 | $3,712 | $3,653 | $3,610 | $3,242 | $3,227 |
| Arizona | $2,385 | $2,112 | $1,876 | $1,843 | $1,787 | $1,573 | $1,565 |
| California | $1,377 | $1,273 | $1,128 | $1,107 | $1,079 | $988 | $960 |
| Colorado | $4,073 | $3,940 | $3,573 | $3,548 | $3,472 | $2,828 | $2,809 |
| Connecticut | $2,499 | $2,293 | $2,086 | $2,062 | $2,005 | $1,819 | $1,816 |
| Washington, D.C. | $1,268 | $1,201 | $1,062 | $1,055 | $1,019 | $936 | $924 |
| Delaware | $1,357 | $1,202 | $1,075 | $1,070 | $1,054 | $1,002 | $989 |
| Florida | $2,933 | $2,676 | $2,419 | $2,410 | $2,410 | $2,272 | $2,266 |
| Georgia | $2,500 | $2,385 | $2,161 | $2,142 | $2,078 | $1,807 | $1,799 |
| Hawaii | $651 | $605 | $578 | $570 | $567 | $541 | $539 |
| Iowa | $2,603 | $2,371 | $2,109 | $2,089 | $2,044 | $1,858 | $1,839 |
| Idaho | $2,056 | $1,815 | $1,583 | $1,569 | $1,497 | $1,318 | $1,318 |
| Illinois | $3,133 | $2,831 | $2,560 | $2,517 | $2,488 | $2,172 | $2,155 |
| Indiana | $3,035 | $2,844 | $2,572 | $2,503 | $2,459 | $2,196 | $2,181 |
| Kansas | $6,088 | $5,401 | $4,938 | $4,878 | $4,802 | $4,431 | $4,350 |
| Kentucky | $2,908 | $2,901 | $2,606 | $2,552 | $2,530 | $2,239 | $2,228 |
| Louisiana | $4,026 | $3,426 | $3,232 | $3,220 | $3,181 | $3,099 | $3,068 |
| Massachusetts | $2,089 | $1,907 | $1,750 | $1,721 | $1,689 | $1,543 | $1,541 |
| Maryland | $2,074 | $2,256 | $2,047 | $2,000 | $1,964 | $1,767 | $1,767 |
| Maine | $1,526 | $1,377 | $1,229 | $1,198 | $1,206 | $1,117 | $1,116 |
| Michigan | $3,561 | $3,179 | $2,884 | $2,834 | $2,806 | $2,475 | $2,461 |
| Minnesota | $2,791 | $2,455 | $2,201 | $2,161 | $2,125 | $1,920 | $1,905 |
| Missouri | $3,753 | $3,519 | $2,775 | $2,734 | $2,683 | $2,819 | $2,798 |
| Mississippi | $4,280 | $4,329 | $3,942 | $3,875 | $3,934 | $3,432 | $3,402 |
| Montana | $3,877 | $3,514 | $3,215 | $3,124 | $3,088 | $2,720 | $2,713 |
| North Carolina | $2,863 | $2,599 | $2,248 | $2,073 | $2,024 | $1,890 | $1,752 |
| North Dakota | $3,167 | $2,946 | $2,708 | $2,684 | $2,639 | $2,460 | $2,444 |
| Nebraska | $6,259 | $5,758 | $5,368 | $5,266 | $5,231 | $4,807 | $4,746 |
| New Hampshire | $1,277 | $1,181 | $1,052 | $1,044 | $1,004 | $920 | $920 |
| New Jersey | $1,475 | $1,323 | $1,169 | $1,155 | $1,140 | $1,043 | $1,034 |
| New Mexico | $2,571 | $2,329 | $2,116 | $2,116 | $2,110 | $2,032 | $2,001 |
| Nevada | $1,583 | $1,419 | $1,271 | $1,256 | $1,224 | $1,113 | $1,081 |
| New York | $2,556 | $2,310 | $2,114 | $2,108 | $2,078 | $1,928 | $1,904 |
| Ohio | $2,308 | $2,087 | $1,893 | $1,843 | $1,802 | $1,616 | $1,597 |
| Oklahoma | $5,711 | $5,155 | $4,548 | $4,483 | $4,376 | $3,874 | $3,839 |
| Oregon | $1,560 | $1,412 | $1,256 | $1,249 | $1,183 | $1,085 | $1,082 |
| Pennsylvania | $2,390 | $2,205 | $1,965 | $1,921 | $1,876 | $1,660 | $1,621 |
| Rhode Island | $1,750 | $1,650 | $1,454 | $1,439 | $1,429 | $1,243 | $1,236 |
| South Carolina | $2,775 | $2,562 | $2,314 | $2,250 | $2,239 | $2,028 | $1,961 |
| South Dakota | $3,666 | $3,658 | $3,337 | $3,311 | $3,247 | $3,040 | $3,000 |
| Tennessee | $3,215 | $2,937 | $2,607 | $2,528 | $2,462 | $2,218 | $2,183 |
| Texas | $5,095 | $4,899 | $4,436 | $4,351 | $4,488 | $3,933 | $3,861 |
| Utah | $1,625 | $1,424 | $1,302 | $1,272 | $1,221 | $1,132 | $1,118 |
| Virginia | $2,240 | $2,034 | $1,869 | $1,822 | $1,808 | $1,666 | $1,657 |
| Vermont | $1,240 | $1,158 | $1,042 | $1,017 | $1,008 | $922 | $912 |
| Washington | $1,816 | $1,606 | $1,391 | $1,381 | $1,275 | $1,129 | $1,122 |
| Wisconsin | $1,561 | $1,454 | $1,323 | $1,307 | $1,275 | $1,156 | $1,148 |
| West Virginia | $1,748 | $1,675 | $1,511 | $1,484 | $1,437 | $1,313 | $1,304 |
| Wyoming | $1,928 | $1,770 | $1,587 | $1,577 | $1,518 | $1,374 | $1,355 |
When using Insurance.com's average home insurance rate by ZIP code tool, you can choose among six deductible amounts to see how premiums compare based on deductible, dwelling, and liability amounts.
The company you choose also matters. Not all companies offer the same deductible options, and options vary by state, but we averaged our company data across all states to provide estimates in the table below.
| Company | $500 | $1,000 | $2,000 | $2,500 | $3,000 | $4,000 | $5,000 |
|---|---|---|---|---|---|---|---|
| State Farm | $2,512 | $2,255 | $1,901 | $1,824 | $1,785 | $1,724 | $1,842 |
| Farmers Insurance | $3,708 | $3,559 | $3,135 | $3,107 | $3,130 | $2,960 | $2,918 |
| Allstate | $1,982 | $1,810 | $1,642 | $1,586 | $1,538 | $1,391 | $1,388 |
| USAA | $2,551 | $2,349 | $2,078 | $2,073 | $1,956 | $1,680 | $1,677 |
| Nationwide | $2,301 | $2,735 | $2,407 | $2,392 | $2,368 | $2,040 | $2,028 |
| American Family | $2,074 | $2,178 | $2,084 | $2,063 | $2,051 | $1,939 | $1,939 |
| Travelers | $4,153 | $4,034 | $3,731 | $3,539 | $3,583 | $3,034 | $3,017 |
| Progressive | $3,810 | $3,678 | $3,319 | $3,313 | $3,422 | $2,877 | $2,841 |
There is no standard deductible, but the average homeowners insurance deductible is $500.
“Not all that long ago, a $100 deductible was the standard deductible amount, but in keeping with inflation, the standard moved to $250. As property claims started to escalate and new coverages were developed, it wasn’t long until $500 became the new standard,” said P.J. Miller, insurance agent, Wallace & Turner Insurance in Springfield, Ohio.
Miller added that many insurance companies also offer disappearing deductibles. In those cases, companies reduce your deductibles if you don't file a claim over a period. So, your $500 deductible may shrink to $100 if you don't make a claim in three years.
Miller said some insurers have also attached higher deductibles to roof claims. Insurance companies usually want homeowners to replace their roof after 20 or 30 years.
The homeowners insurance deductible that’s right for you depends on your financial situation.
“Go with the highest deductible you’re comfortable with, whether that’s psychologically or monetarily,” Miller says. “And don’t think about it on a one-year basis as that tends to skew the thinking because you want to reduce your homeowner premium as much as possible over the course of your homeownership. A substantial deductible like $1,000 or $2,500 might save you $100 or even $200 to $300 or more on an annual basis, and after five years, you’ve put a dent in that homeowner premium.”
Here are some scenarios to help you figure out which deductible to choose:
Insurance companies can dazzle you with apparently generous savings for deductibles. But, just as with all discounts, those savings may not be as attractive as they first seem.
The only way you can be sure you're getting the best deal is to shop around for competitive quotes every time you renew or amend your policy. Check out the best homeowners insurance companies. Know what homeowners insurance discounts to ask about and be aware of the key factors that affect homeowners insurance rates. Also, get quotes for multiple deductible levels to see what's the best deal for you.
A $2,500 deductible is on the upper end of deductible amounts for most standard homeowners insurance policies, which means you'll pay a lot less in premiums. If you can easily afford $2,500, it's a good choice.
Yes. If you file a claim for home repair, the contractor will be the one to receive the deductible amount. If you do not pay the contractor for the work they’ve performed, they can sue you and have a lien placed on the property. Additionally, the insurance company will not step in to pay for the remainder of the repair if you do not pay your deductible first.
Yes. You can change your deductible at any time. However, it won't change the amount due for claims you've already filed.
