How Does My Homeowners Insurance Deductible Work? 

If you’re a homeowner in Bradenton, understanding how your insurance deductible works can make a big difference when it’s time to file a claim. It’s one of the most important parts of your policy, yet it’s often misunderstood.

What Is a Deductible?

A deductible is the amount you agree to pay out of pocket before your insurance coverage steps in. For example, if you have a $1,000 deductible and file a claim for $8,000 in covered damages, your insurance may help with the remaining $7,000.

Deductibles are typically listed as either a fixed dollar amount or a percentage. In Florida, it’s common for policies to include both. For everyday incidents (e.g., fire, theft or water damage from a burst pipe) your standard dollar-based deductible will likely apply. But when it comes to hurricane-related claims, a separate, percentage-based hurricane deductible may be used. This is often based on your home’s insured value rather than a set number and can significantly affect how much you’re responsible for contributing out of pocket during storm season.

How Does It Affect Your Policy and Premiums?

Choosing a higher deductible often lowers your monthly premium, but it also means paying more out of pocket if something goes wrong. On the other hand, a lower deductible gives you less financial burden when filing a claim but usually comes with higher premiums.

If your home is in a coastal or storm-prone area like Bradenton, understanding when each type of deductible applies can help you plan ahead. It’s also a good idea to review your coverage annually and make adjustments based on current repair costs and your household budget.

Learn More

Tropical Insurance of Manasota Inc in Bradenton, Florida, can walk you through how deductibles work in your specific policy and help you choose options that align with your financial goals. We’re here to help you feel more informed before storm season starts.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.