What are home insurance deductibles?
An insurance deductible is the amount of a covered claim that is your responsibility to pay before the insurance coverage takes over. Generally, there is a minimum deductible and higher amounts may be available.
Higher vs. lower home insurance deductibles
When choosing a deductible higher than the minimum, consider how much you're prepared to pay if you have a covered loss. For instance, if you choose a $1,500 deductible, then you'll be responsible for the first $1,500 of a covered claim. There is no deductible for personal liability coverage.
How much coverage might I need?
The amount of homeowners insurance you buy (your coverage limits) starts with your dwelling coverage. Work with your agent or Travelers representative to help you determine what coverage fits your needs; you likely want it to be enough to pay the estimated cost to fully rebuild your home in the event you suffer a total loss.
There are many terms, conditions and exclusions in a policy. It's important that you read your policy. You may also want to talk to your agent or Travelers representative to learn what may be covered and not covered.
Homeowners coverage limits
The limits of coverage for the other standard coverages in your homeowners policy are typically calculated as percentages of your dwelling limit. For example, if you decide on a $300,000 limit for your dwelling coverage, your other limits on a homeowners policy could be as follows:
Dwelling: $300,000
Other Structures: 10% of dwelling, $30,000
Personal Property: 50% of dwelling, $150,000
Loss of Use: 20% of dwelling, $60,000
You may be able to adjust these limits. Talk to your agent or Travelers representative to learn more.
Other coverage limits
With your personal liability and medical payments coverages, you choose the limit of coverage from the available options. Policies typically have a $100,000 minimum limit on personal liability, but you can choose a higher limit. Similarly, policies typically have a $1,000 minimum limit for medical payments coverage, with higher limits available for purchase. Your agent or Travelers representative can help.
