Deductibles vary by insurance carrier and state of residence
Insurance is regulated by the laws of each state and insurers are closely monitored and required to comply with these laws.
The same applies to deductibles, and specific rules and specific descriptions of how deductibles work and are implemented in that state are included in insurance policies. For example, in some states, there is a variety of deductibles or a range of deductibles that can be applied to policies.
When shopping for auto or property insurance, always ask about deductibles. For example, for home insurance, owned or rented, there is a deductible range that typically starts at $500.
However, if there is an opportunity in that state to elect another deductible, say one per $1,000,
Liability claims are not subject to deductibles
As a general rule, claims arising from civil liability ( liability), whether in a home or auto policy, are not subject to a deductible.
Deductibles apply to portions of coverage for property (structure or contents of a home) or for losses sustained on an auto. In the case of vehicle insurance, deductibles are triggered when the claim is for a collision or for other damages covered under the collision or extensive portion.
In a homeowners or renters insurance policy, the deductible will take effect in the case of a loss on the structure or contents of the home, but will not take effect if it is a claim against the owner (or tenant) in which the protection for civil liability, medical expenses, etc. comes into force.
Flood insurance also has deductibles and these vary
Damage from a flood is not usually covered under the standard homeowner’s policy but can be obtained through the National Flood Insurance Program .–NFIP) and some specialized private insurers. The NFIP policy is a separate policy from your homeowner’s insurance and therefore has separate deductibles. You can choose the deductible you want for your flood coverage for the structure and a different one for the contents of your home. However, mortgage companies or home finance companies may require a specific deductible amount. In the event of a vehicle flooding, these damages will be covered through the comprehensive insurance portion of auto insurance, but since it is not mandatory coverage, many people may not have it.
Deductibles to be used in cases of hurricanes, earthquakes or hail are usually a percentage of the total coverage
- In cases of earthquakes: The deductibles can be within a range between 2% and up to 20% of the total replacement value of the structure. Insurers in states with higher earthquake risk, such as Washington, Nevada, and Utah, generally have a minimum 10% deductible. Similarly, policyholders can increase the deductible to save a little more on their earthquake insurance policies.California residents can purchase earthquake insurance through the California Earthquake Authority (CEA). CEA’s standard policy includes a deductible of 15% of the replacement cost of the home. The basic policy covers only the structure of the main house (adjacent garages, annexes, swimming pools, sheds, etc., are not usually covered in the basic policy). Personal belongings or contents of the home are typically covered up to $5,000 and the amount for “Loss of Use,” or additional living expenses outside the residence while it is being repaired (ALE – Additional Living Expenses ).) is covered up to $1,500. However, since many people need more coverage, the CEA also offers this with a 10% deductible for additional structures, more coverage of up to $100,000 for personal belongings (house contents), and up to $15,000 in loss of use.
