A deductible is the amount of money you’re required to pay out of pocket toward a covered claim before insurance kicks in to cover the costs. Most homeowners insurance companies offer two types of deductibles: a fixed deductible and a percentage-based deductible. Your deductible affects the cost of your home insurance and your coverage. A higher deductible can make your homeowners insurance more affordable but repairs more costly, whereas a lower deductible can lead to more expensive insurance rates. When choosing your deductible, pick one that makes sense for your budget and what you can afford for any repairs or replacement.