What is a deductible?
The amount you pay before insurance pays. The NAIC describes deductibles as either a flat dollar amount or a percentage of the home's insured value (NAIC). The Insurance Information Institute explains how homeowners deductibles work (Insurance Information Institute).
General information
This page explains how homeowners insurance generally works, using state insurance regulators' guides. Your policy wording controls. Call your insurer or agent about your claim.
How does it apply to a water damage claim?
The insurer generally figures the covered amount, then subtracts your deductible from what it pays. If the covered damage is less than your deductible, there is usually no payment.
Should I file a claim for small water damage?
That is your call. Compare the estimate with your deductible, and ask your agent how a claim may affect your policy.
Common questions
Is there a separate water damage deductible?
Some policies have one. Check the declarations page of your policy.
Does the restoration company collect the deductible?
Usually you pay your deductible to the contractor as part of the repair cost, since the insurer's payment is reduced by it.
Can a contractor waive my deductible?
Ask your insurer before agreeing to anything like that. It can cause problems with the claim.
Related guides
Sources
- NAIC: Post-Disaster Claims Guide
- Insurance Information Institute: understanding your insurance deductibles
Last reviewed November 13, 2026. This guide is general information, not legal, insurance or medical advice.