What Is A Typical Deductible On Homeowners Insurance? 
Years ago , it was n't all that uncommon to see a $ 100 deductible . Those days are gone . Today , our standard deductible is $ 500 but I sell more deductibles of $ 1.000 and $ 2,500 . There 's a reason for this . In the past , say around 25 years ago , a homeowners policy was very basic and really only covered your home and contents with a few other ancillary coverages . The consumer was different , also . They usually only filed a claim for something big like a fire or tornado . About 20 years ago or so , insurance companies thought it would be a good idea to add more coverages for smaller things like refrigerated food and others . Then , a strange thing happened : People started claiming these things . You see , big claims like fires are very infrequent and the rates were built around these rarely occurring , big losses . They were n't prepared for the more frequent small losses . Therefore , a $ 100 deductible on a total loss does n't add much to the claim . However , insurance companies began seeing a lot of smaller claims and , now , that $ 100 deductible made it beneficial to the consumer to claim that $ 400 loss . In fact , they became so frequent that it was really hurting the insurance companies profitability . Every claim requires people to process it , adjust it , and make a payment . Insurance companies were seeing these costs skyrocket and they had no choice but to raise premiums to offset these costs . They finally reached a point where they had to discourage all these small losses . The way they did it ? they made the $ 100 and $ 250 deductible options a lot more expensive . So now , a $ 500 deductible is pretty standard , with higher deductibles saving quite a bit off the premiums . What does this mean for you ? First , realize that your homeowners policy was designed to cover the catastrophic losses , not the small things that happen more often . In Michigan , if you have 3 claims in a 3 year period that are n't weather-related , your company can cancel your policy . This will leave you in a spot where you may have to pay 3 or 4 times the premium your used to until you 're eligible again . A homeowners policy is not a maintenance contract . As a homeowner , things are going to happen and the responsibility for maintaining your home is yours . My advice is this : Take care of your home and pay for the small things and take a higher deductible . You 'll probably save more before you have claim than the difference in the deductible . In the long run , you 'll be protected against the big things and you 'll have more money in your pocket . 