What Is A Deductible And Why Is Mine So High?

A deductible is the amount of money you have to pay out-of-pocket before your insurance policy kicks in and starts covering costs. Your deductible is set when you purchase your policy, and it likely won’t be changed unless you decide to switch insurers. So why is your deductible so high? And what can you do about it? Here’s a look at how deductibles work.

YouTube video

First off, what is a deductible? 

An insurance deductible is the amount of money that you have to pay out of your own pocket before your insurance company will start paying for your claim.

Why do insurance companies have deductibles? 

For one, deductibles can help to keep your premiums lower. And secondly, they act as a deterrent for false claims.

How does the deductible work? 

Let’s say you have a $500 deductible and you experience a covered loss that costs $5,000. You would pay the first $500 and your insurance would pay the remaining $4,500.

Now let’s talk about why your deductible seems so high.

One of the most common questions homeowners ask is why their insurance deductible is so high.

The answer to this question depends on a number of factors, including the type and value of your home,


the amount of coverage you have, and the level of risk in your area. In general, the higher the value of your home and the more coverage you have, the higher your deductible will be. However, if you live in an area that is prone to natural disasters or other risks, your insurer may require you to carry a higher deductible to offset their increased risk. Ultimately, your homeowner’s insurance deductible is determined by a number of factors, all of which are designed to protect you and your home.

So, there you have it. Your homeowner’s insurance deductible explained in a way that hopefully makes sense. If you still have questions or would like to review your current policy, please don’t hesitate to reach out. We’re always here to help! 


Map Marker - Black - Shadow

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at The McBride Agency is here and ready to make the process as painless as possible. We look forward to meeting you!