Home insurance basics
Home insurance deductibles, explained
A deductible is the amount you pay toward a covered claim before the insurer pays. Most homeowners policies use a flat all-perils deductible such as $1,000 or $2,500; earthquake coverage uses a percentage of the dwelling limit, which can mean tens of thousands of dollars.
Flat vs. percentage deductibles
Short answer: A flat deductible is a fixed dollar amount; a percentage deductible is a share of your dwelling limit.
| Type | Example on a $600,000 dwelling limit | Out of pocket |
|---|---|---|
| $2,500 flat | Pipe burst, $18,000 damage | $2,500 |
| 10% earthquake | Earthquake, $90,000 damage | $60,000 |
How to choose
Short answer: Pick the highest deductible you could pay tomorrow without hardship, then compare the premium savings.
Don't file claims smaller than or close to your deductible — they rarely pay and can affect future rates. More: how to lower home insurance costs.
Keep exploring
- Home insurance costWashington homeowners insurance cost depends on rebuild cost, location, roof, claims and deductible. See what moves the price and how to lower it safely.
- Earthquake insurance in WashingtonStandard Washington homeowners policies exclude earthquake. How earthquake endorsements work, percentage deductibles, and how to decide for a Puget Sound home.
- Home insuranceWhat Washington homeowners insurance covers — dwelling, belongings, liability, living costs — and what it doesn't. Get a home insurance quote from a Federal Way agent.
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