Use this calculator before raising or lowering a homeowners insurance deductible. It compares your current deductible with an alternative, including separate wind, hail, or hurricane percentage deductibles when those could control a claim.
Policy and claim inputs
Enter positive if the alternative saves money.
Example: 8 means one claim every eight years.
Use zero to ignore this risk.
Separate wind, hail, or hurricane deductible
Deductible Comparison
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Side-by-side numbers
| Scenario | Premium / yr | Applicable deductible | Claim out-of-pocket | Holding-period premium | Expected annual cost |
|---|
Methodology
The calculator compares the current policy with an alternative policy using the current annual premium and the entered annual premium savings or increase. A positive premium change means the alternative premium is lower; a negative number means the alternative costs more.
Applicable deductibles use the flat all-peril deductible unless the separate peril option is enabled. When enabled, the deductible is the greater of the flat deductible, the percentage deductible times dwelling coverage, and the entered peril minimum.
Claim out-of-pocket is capped at the expected claim amount because a deductible cannot exceed the modeled covered loss. Premium impact is the annual change multiplied by the holding period. Expected annual cost equals annual premium plus claim out-of-pocket divided by the years between claims.
Break-even claim frequency shows how often a claim would need to occur before the alternative's extra deductible offsets the annual premium savings. The filing threshold adds the applicable deductible and the surcharge/nonrenewal risk allowance.
Important caveats
- Your actual policy declarations, endorsements, and insurer claim rules control. This calculator is only planning math.
- Wind, hail, hurricane, named-storm, flood, and earthquake deductibles may be separate from the all-peril deductible and may use percentages of Coverage A or another policy limit.
- Filing small claims can trigger surcharges, loss of claims-free discounts, stricter underwriting, inspection requirements, or nonrenewal risk. Rules vary by carrier and state.
- Mortgage lenders may limit deductibles or require continuous hazard, flood, wind, or other coverage. Confirm lender requirements before increasing a deductible.
- State insurance rules can affect claim handling, cancellation, deductibles, mitigation credits, and surcharge practices.
- Keep enough emergency cash to pay the largest deductible that can realistically apply, especially where percentage storm deductibles are common.
- Coverage exclusions, depreciation, matching rules, code upgrades, limits, and sublimits can matter more than the deductible on a real claim.
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Frequently asked questions
Should I raise my homeowners insurance deductible?
Only if the annual savings are meaningful, you can comfortably pay the higher deductible, lender rules allow it, and separate peril deductibles do not create a larger cash exposure than expected.
What is the downside of a high deductible?
The downside is cash pressure after a loss. A high deductible can also discourage filing claims that are technically covered but too close to the deductible to justify claim risk.
Does a hurricane deductible apply to every claim?
No. It depends on the policy language, state rules, storm trigger, and cause of loss. Read the declarations page and endorsements before assuming which deductible applies.
What claim amount is worth filing?
There is no universal line. A practical threshold is the deductible plus a cushion for possible surcharges, nonrenewal risk, lost discounts, and your tolerance for claim history impact.