General
Deductible
The amount you pay out of pocket before your insurance starts paying.
What it actually means
A deductible is the dollar amount you're responsible for on a claim before your insurer covers the rest. Higher deductibles usually mean lower premiums, because you're taking on more of the small, everyday risk yourself and only asking the insurer to step in for the bigger losses.
Example: If your home has a $2,000 deductible and a storm causes $10,000 in damage, you pay the first $2,000 and your insurer pays the remaining $8,000.
See it in context
Run the free Insurance Coverage Blueprint to see how deductible and terms like it apply to your specific situation — no signup required.