A deductible is the amount you will pay out of pocket for losses or damages before an insurance provider makes a payment toward a claim.

How does a deductible work?

You can choose the deductible when purchasing a policy.

Typically, the higher the deductible, the lower your monthly premium will be. Rates may vary by state. You also can choose to value items by replacement cost or cash value.

If your claim is more than your deductible, insurance will pay the difference.

Some policies will offer a separate deductible for unforeseen events such as a fire.

How to find or change your deductible?

Check your insurance policy’s declaration page for information about your deductible.