As the concept of how a deductible works is as simple as how the word translates so directly to its meaning, about 8% of homeowners still never understand the concept of their deductible.  A deductible is simply the portion YOU are responsible for paying out of pocket on your claim.  Rather than sending your insurance company a check for your deductible, and then them sending you back a check for the total costs of the repairs, they simply “deduct” it out.  This means if your contractor and your insurance company agree the repairs should cost $20,000.00, and you have a $3,000.00 deductible, they will only send you $17,000.00.  When you pay your contractor your deductible plus the money your insurance company sent you, it should add up to the price they both agreed the work should cost.  In laymen’s terms,  if Jonny (the insured) wanted to buy a candy bar that cost one dollar, and Frankie (insurance company) agreed to pay for it less Jonny’s five cent deductible, Frankie would hand Jonny ninety five cents.  Since the candybar still costs a dollar, Jonny would have to find a nickel in his pocket to go with the ninety five cents Frankie gave him.