How homeowners insurance deductible works?

@keshawn 

Homeowners insurance deductible works by determining the amount you would have to pay out of pocket before your insurance coverage kicks in to cover the rest of the claim.

Here's how it typically works:

1. Choose Your Deductible: When you purchase homeowners insurance, you'll have the option to choose your deductible amount. This is the amount you agree to pay towards a claim.
2. Incident Occurs: If an incident covered by your insurance policy occurs, such as a fire or water damage, you'll need to file a claim with your insurance company.
3. Pay Your Deductible: When you file a claim, you'll be responsible for paying your deductible amount out of pocket. For example, if you have a $1,000 deductible and the damage to your home is $5,000, you'll pay $1,000 and your insurance company will cover the remaining $4,000.
4. Insurance Coverage Kicks In: After you pay your deductible, your insurance coverage will kick in and cover the remaining cost of the claim, up to the policy limit.

It's important to note that the deductible is per claim, not per year. So, if you have multiple claims in a year, you'll need to pay the deductible for each claim. Additionally, some insurance policies may have separate deductibles for specific events like hurricanes or floods.

Keep in mind that choosing a higher deductible can help lower your insurance premiums, but it also means you'll have to pay more out of pocket in the event of a claim. On the other hand, a lower deductible will result in higher premiums but a lower out-of-pocket expense.