Your home insurance deductible is the amount of the loss which the person that is insured has to pay before the insurance company pays off the claim.

Home insurance deductibles enable you to lower the cost of the insurance by being responsible for some risk. If you have a $250 deductible on the policy of your home, you have to pay the first $250 of loss under the policy before the insurer is obligated to pay anything. If you increase the deductible to $1000 you may be able to save 10-20% on the premiums you pay.

Having insurance is asking yourself how much risk are you going to assume if something happens to your home. In understanding your deductible you have to ask yourself this question. Many companies offer deductibles that equal 1% of the value of your home insured, so for example $2,000 on a home worth $200,000.

You have to know the amount you will have to pay in the event of a loss or damage to the home. You can increase or decrease your deductible but then you will have to pay more or pay less on the loss. In understanding your deductible you have to assess the risks to where your home is. If it is in a neighborhood that has high crime you may want to decerase your deductible so you do not have to pay as much in the event of a loss. The same goes for living in an area that has much adverse weather. Basically it is how much you are comfortable paying if something were to happen to your home.

It is a good option to talk to a professional, especially an insurance broker, and ask them to explain all the aspects of your deductible to you to make sure you are comfortable with the deductible. By better understanding your deductible for your homeowner's insurance policy you will ensure that you have the one that is right for you.