Homeowners Deductible Tradeoff

Annual savings × years until deductible jump pays back.

Inputs

Result

Years until deductible payback
10.0 yr
Saves $400/yr; need 10.0 claim-free yrs.
  • Lower deductible$1000
  • Lower premium$1500/yr
  • Higher deductible$5000
  • Higher premium$1100/yr
  • Deductible difference$4000
  • Annual savings$400
  • Payback years10.00

Step-by-step

  1. Annual savings if you go higher = $1500 − $1100 = $400.
  2. Years to recoup the higher deductible = $4000 / $400 = 10.00.

How to use this calculator

  • Enter both quote scenarios.
  • See payback period.

About this calculator

Higher deductible = lower premium. Pays off if you go ~5+ years between claims (typical homeowner average). For low-claim discipline + healthy emergency fund: take $5k+ deductible, save $300-500/yr. For year-to-year cash-poor or disaster-prone areas: keep $1k-2.5k. Most insurers separate hurricane/wind deductibles (1-5% of dwelling) from regular peril deductibles.

Frequently asked

Homeowner: ~1 claim per 10-15 years. Most years: zero. So higher deductible usually pays.

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