Awaiting expert review. This page covers rules that vary by utility and jurisdiction. It is kept out of search results until a qualified reviewer has checked it; the sources below are dated so you can verify each point.
Quick answer
An insurance deductible is the part of a covered claim that you pay yourself before your homeowners policy pays the rest. It can be a set dollar amount or a percentage of your home's insured value.
On a roof claim, the deductible is taken off what the insurer owes. Many policies have a separate, often larger, deductible for wind, hail, hurricane or named-storm damage. Your declarations page lists each one.
Quick facts
- What it is
- The amount of a claim you must pay yourself 2
- Two forms
- A set dollar amount or a percentage 1
- Percentage of what
- Usually the home's insured value, not the claim 4
- Hurricane and named-storm range
- 1% to as high as 15% of insured value 4
- How often it applies
- On each claim 1
- Waiving it (Texas)
- Illegal for a contractor to offer 3
Key takeaways
- A deductible is the part of a covered claim you pay yourself; the insurer pays the rest.
- It can be a set dollar amount or a percentage, and a percentage is worked out from your home's insured value, not from the damage.
- Many policies have a separate wind/hail, hurricane or named-storm deductible that is larger than the main one.
- If the damage costs less than the deductible, the claim pays nothing.
- Find the dollar figure for each deductible on your declarations page before storm season.
What a deductible means
The Texas Department of Insurance puts it in one line: a deductible is the amount of a claim that you must pay yourself 2.
The National Association of Insurance Commissioners (NAIC), the group that brings state insurance regulators together, adds that it is paid out of pocket on each claim and applies to coverage on your house and your belongings 5.
So the deductible is your share of a loss. The insurer's share is everything above it, up to your coverage limit. A deductible does not reduce the damage. It only decides who pays the first part of the bill.
On a roof, this matters more than on most claims. Roof damage often comes from wind and hail, and those perils frequently carry their own deductible. That separate deductible can be much larger than the one you think of as "my deductible".
How the deductible comes off a roof claim
The insurer first works out what it owes for the covered damage. Then it subtracts the deductible. TDI gives a simple case: on a $1,000 claim with a $300 deductible, the insurer takes off $300 and pays $700 2. These are the regulator's own example numbers, not prices.
On a replacement cost policy, the first check after the adjuster's visit is usually the estimated cost of repairs minus depreciation and minus your deductible 2.
The rest may follow once the work is done. On an actual cash value policy, the deductible comes off a figure that has already been reduced for the roof's age.
The deductible applies to each claim. TDI notes that two separate claims in one year mean two deductibles 1. One storm usually means one claim, but a hailstorm in spring and a windstorm in summer can mean paying twice.
Types of deductible you may see on a homeowners policy
| Type | How it is set | When it applies |
|---|---|---|
| All-peril (main) deductible | Usually a set dollar amount | Most covered losses that no other deductible covers |
| Wind/hail deductible | A dollar amount or a percentage | Any kind of damage from a wind or hail event 4 |
| Hurricane deductible | More often a percentage of insured value 4 | Damage solely from a hurricane as named by the National Weather Service or National Hurricane Center 4 |
| Named-storm deductible | More often a percentage of insured value 4 | Hurricanes plus storms such as tropical storms that have been given a number or name 4 |
Flat dollar vs percentage deductibles
A flat deductible is a fixed number of dollars, such as $1,000. You know exactly what you pay on a claim, and it does not change when your coverage goes up.
A percentage deductible is a share of your home's insured value, also called the dwelling limit or Coverage A. The NAIC says a percentage deductible is typically applied to the home's insured value to set the amount 4. It is not a percentage of the damage. That is the part many homeowners miss.
TDI's advice is direct: if your deductible is a percentage, make sure you know how that turns into a dollar amount 1. As your dwelling limit rises over the years, the dollar amount of a percentage deductible rises with it, even if the percentage stays the same.
Deductible = percentage × dwelling coverage limit
Percentage- The rate on your declarations page, such as 1%, 2% or 5%
Dwelling coverage limit- Coverage A, the amount the house itself is insured for, not the claim size and not the home's market value
Because it is tied to the dwelling limit, the deductible rises when the limit rises at renewal 1.
Source: [1]
Worked example: the same roof damage, two deductibles
This is the Texas Department of Insurance's own example 1. Both homes are insured for $150,000 and both have $6,500 of roof damage. Policy A has a $500 flat deductible. Policy B has a 5% deductible. These are regulator example figures, not prices.
| Line | Policy A ($500 flat) | Policy B (5%) |
|---|---|---|
| Home insured for | $150,000 | $150,000 |
| Deductible in dollars | $500 | $7,500 (5% of $150,000) |
| Covered roof damage | $6,500 | $6,500 |
| Insurer pays | $6,000 | $0 |
| You pay | $500 | $6,500 |
Same storm, same damage, same house value. The only difference is one line on the declarations page. With the 5% deductible, the damage is smaller than the deductible, so the claim pays nothing.
Illustrative example: how a percentage grows with the dwelling limit
Illustrative numbers, to show the arithmetic only. They are not prices or typical figures. One home has a 2% wind/hail deductible. Over the years the owner raises the dwelling limit to keep up with rebuilding costs.
| Dwelling limit | 2% deductible in dollars |
|---|---|
| $200,000 | $4,000 |
| $250,000 | $5,000 |
| $300,000 | $6,000 |
The percentage never changed, but the amount you pay before the policy pays went up by half, from $4,000 to $6,000. Check the dollar figure each time your policy renews. Our hail claim tool runs this with your own figures.
Where to find your deductibles
- Open the declarations page, the summary page at the front of your homeowners policy.
- Find the deductible lines. There may be one for all perils and a separate one for wind/hail, hurricane or named storm. TDI notes you might have different deductibles for each type of coverage 2.
- If a deductible is a percentage, find the dwelling limit (Coverage A) and multiply. That is your dollar amount.
- Look in the endorsements list for anything that changes the deductible for the roof or for storms.
- If you still cannot tell, ask your agent. TDI's guide says to read your policy or ask your agent if you do not know your deductible 2.
Why a higher deductible can make sense
- It lowers the premium. TDI says switching from a $500 to a $1,000 deductible can save as much as 20 percent on premium payments 1.
- The NAIC notes that higher deductibles may be available at a reduced price 5.
- It keeps you from filing small claims. TDI warns that filing small claims may affect what you pay for insurance later 1.
- If you have savings set aside for repairs, a higher deductible moves money from premium to your own pocket in years with no claim.
The downsides of a high or percentage deductible
- Many roof repairs cost less than a large percentage deductible, so the claim pays nothing 1.
- A percentage deductible rises as your dwelling limit rises, often without you noticing.
- On an older roof with actual cash value coverage, the deductible comes off an already reduced figure, so little may be left.
- You pay a deductible on each claim, so two storms in one year can mean two deductibles 1.
- You need the cash on hand at the worst time: right after a storm, when roofers are busy.
What drives the deductible you pay
Four things set what a deductible costs you on a roof claim. First, the form: flat or percentage. Second, the base: for a percentage, the dwelling limit it is multiplied by 4.
Third, the peril: wind, hail, hurricane and named-storm damage may have their own, larger deductible 4. Fourth, how the claim settles, replacement cost or actual cash value, which decides what the deductible is taken from.
The premium side moves the other way. A larger deductible usually means a smaller premium 5. That is a trade you make when you buy or renew the policy, not after the storm. For the cost of the roof work itself, see our roof cost guide; we do not quote prices here.
How the deductible is handled on a roof claim, step by step
- A storm damages the roof. Make only temporary repairs, such as a tarp. TDI advises against permanent repairs before the claim is handled 2.
- Report the claim and take dated photos of the damage.
- The adjuster inspects the roof and writes an estimate of the covered damage.
- The insurer works out which deductible applies. A wind or hail event may trigger the wind/hail deductible 4.
- The insurer subtracts depreciation if it applies, then the deductible, and pays the rest 2.
- You pay the deductible to your roofer as part of the bill. In Texas the insurer may ask for proof that you paid it 3.
Keeping on top of your deductible each year
A deductible is not something you set once. Treat it as part of the yearly roof check. When the renewal arrives, find each deductible line and turn any percentage into dollars. If the dwelling limit went up, the dollar amount went up too.
Then compare that figure with what you could pay after a storm.
If the number is more than you could raise quickly, ask your agent about other deductible options and what they would do to the premium.
Keep a copy of the declarations page with your roof records, so you can find it fast when you need it.
Deductible traps on roof claims
- Not knowing you have a separate wind/hail deductible until after a hailstorm.
- Reading "2%" as 2% of the damage. It is usually 2% of the insured value 4.
- A contractor offering to "cover" or "waive" your deductible. In Texas that is illegal, and TDI warns such contractors may cut corners or inflate the bill to the insurer 3.
- Filing for small damage that is below the deductible, which pays nothing and can still count as a claim 1.
- Making permanent repairs before the adjuster sees the damage 2.
The rules on deductibles
Homeowners insurance is regulated by each state's insurance department, so deductible rules differ by state.
The NAIC reports that 19 states and the District of Columbia had some form of hurricane or named-storm deductible as of June 2025, and that the events that trigger them vary from state to state and insurer to insurer 4.
Texas has rules on paying the deductible itself. TDI explains that Insurance Code Chapter 707 requires a property policyholder to pay the deductible and lets insurers ask for proof of payment.
Business and Commerce Code 27.02 bars contractors from waiving or rebating a deductible, and contracts of $1,000 or more that involve an insurance settlement must carry a notice that the policyholder must pay the deductible 3.
Other states have their own rules. This page explains the general term. It is not legal or insurance advice; your policy wording and your state's rules are what bind your claim.
Deductible vs related claim terms
| Term | What it is | Who pays |
|---|---|---|
| Deductible | The part of a covered claim you pay yourself 2 | You |
| Depreciation | Value the roof lost to age and wear before the loss | You, unless it is recoverable on a replacement cost policy |
| Premium | What you pay to keep the policy in force | You, whether or not you claim |
| Coverage limit | The most the policy pays for a type of loss | Insurer pays up to it |
| Claim payment | What is left after depreciation and deductible | Insurer |
Common misconceptions
- Myth A 2% deductible means I pay 2% of the repair.
- Reality A percentage deductible is usually a share of the home's insured value, not of the claim 4.
- Myth I only have one deductible.
- Reality Many policies have a separate deductible for wind and hail, hurricanes or named storms 4.
- Myth My roofer can absorb the deductible for me.
- Reality In Texas it is illegal for a contractor to offer to waive, rebate or absorb it 3. Check your own state's rules.
- Myth The deductible is paid once a year.
- Reality TDI says the deductible applies to each claim 1.
Your state and your storms
Where you live shapes which deductibles you carry. Coastal states are where hurricane and named-storm deductibles are common; the NAIC counts 19 states plus the District of Columbia with some form of them 4. Inland hail regions more often see separate wind/hail deductibles. Your state insurance department publishes consumer guides and takes complaints.
We do not hold a list of state deductible rules on this page, and we will not guess at one. Ask your agent which deductibles are standard where you live, and check your state insurance department's site for its consumer guide.
When your deductible matters, and what to do next
- Before storm season: turn every percentage deductible into dollars and decide if you could pay it.
- After a storm: compare a roofer's estimate with your deductible before you file; damage below the deductible pays nothing.
- At renewal: ask your agent what a different deductible would do to your premium.
- If a contractor offers to cover your deductible, treat it as a warning sign.
Keep going
- Storm damage and insuranceHow a roof claim works, step by step
- Hail claim estimatorTry your deductible against a repair estimate
- Roof inspectionGet the damage looked at and written up
- Repair or replace?When a claim payment changes the decision
Questions about insurance deductible
What is a deductible on homeowners insurance?
It is the part of a covered claim that you pay yourself. The insurer pays the rest, up to your limit. Texas regulators give the example of a $1,000 claim with a $300 deductible: the insurer pays $700. Your deductibles are listed on the declarations page of your policy.
How does a percentage deductible work on a roof claim?
It is a share of your home's insured value, not of the damage. A 5% deductible on a home insured for $150,000 is $7,500, in the Texas Department of Insurance's example. If the roof damage is less than that, the claim pays nothing. Multiply the percentage by your dwelling limit to see your dollar amount.
What is a wind and hail deductible?
It is a separate deductible that applies to damage from a wind or hail event. The NAIC says it usually covers any kind of damage from such an event. It can be a dollar amount or a percentage, and it is often larger than the policy's main deductible.
What is the difference between a hurricane and a named-storm deductible?
A hurricane deductible applies only to damage from a hurricane as named by the National Weather Service or National Hurricane Center. A named-storm deductible is wider: it also covers storms such as tropical storms that have been given a number or name. The NAIC says both can range from 1% to 15% of insured value.
Do I pay the deductible to the insurer or the roofer?
Usually you pay it to the roofer. The insurer takes the deductible off its payment, so the gap between its check and the roofer's bill is yours to pay. In Texas, the insurer may ask for proof that you paid it.
Can a roofer pay or waive my deductible?
In Texas, no. The Texas Department of Insurance says it is illegal for a contractor to offer to waive, rebate or absorb a policyholder's deductible. TDI also warns that such contractors may cut corners or inflate the bill. Other states have their own rules, so check with your state insurance department.
Should I file a claim if the damage is close to my deductible?
Often not. If the damage costs less than the deductible, the claim pays nothing, and TDI warns that small claims may affect what you pay for insurance later. Get a written repair estimate first and compare it with the dollar amount of the deductible that applies.
Does a higher deductible lower my premium?
Usually, yes. The Texas Department of Insurance says moving from a $500 to a $1,000 deductible can save as much as 20 percent on premium payments. The trade-off is that you pay more yourself when you have a claim, so pick an amount you could actually afford after a storm.
Do I pay a deductible for every storm?
You pay a deductible on each claim. TDI says two claims in one year mean two deductibles. Some states have special rules for hurricane deductibles over a season, so check your policy and your state's consumer guide.
Sources
- Texas Department of Insurance, "Deductibles" (updated Oct 14, 2024), retrieved .
- Texas Department of Insurance, Homeowners insurance guide, retrieved .
- Texas Department of Insurance, "Roofing and insurance: Know the law", retrieved .
- National Association of Insurance Commissioners, Hurricane and wind/hail deductibles, retrieved .
- National Association of Insurance Commissioners, "Homeowners Insurance" consumer guide, retrieved .
Expert review
Written by the HyreRoof editorial team. Not yet reviewed by an outside expert. We say so rather than imply a review that has not happened; see our editorial policy.
How the numbers were checked: Definitions and rules taken from the Texas Department of Insurance and the NAIC; the flat vs percentage example is TDI's own; the dwelling-limit table uses round illustrative numbers only to show the arithmetic. Held for review by a licensed insurance professional before indexing.
Suggest a correction. We fix errors and say what changed.