A home insurance deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in for a covered claim. For example, if you have a $1,000 deductible and file a claim for $5,000 in storm damage, your insurer will pay $4,000 after you cover the initial $1,000. Deductibles can be a fixed dollar amount or a percentage of your home’s insured value, depending on your policy. Choosing a higher deductible generally lowers your premium because you take on more financial responsibility in the event of a loss, while a lower deductible means higher premiums but less out-of-pocket expense during a claim. It’s essential to pick a deductible amount you can afford at any time. Understanding how deductibles work helps you make informed decisions about filing claims—especially for minor repairs where the cost may not exceed the deductible.