The deductible is the amount that you will need to pay when you make a claim before the insurer will cover the rest. For instance, if you have a $1000 deductible and it costs $10,000 to replace your contents after a break-in, you will pay the initial $1000 and then your insurance company would pay the remaining $9,000. The deductible is often determined by using a percentage of the home’s value insured. However, you can change the deductible to suit you. Just remember, the higher the deductible, the lower the insurance premiums.