Your home is often your most significant physical asset. It provides shelter, security, and comfort, but home ownership can also bring with it surprise costs that you weren’t able to plan or budget for.
How should you react if your home takes damage from a weather event or another type of disaster and the cost of repairs outweighs your home insurance coverage?
In a related scenario, a homeowner’s home coverage may be sufficient to get repairs started, but that only works if you can first pay the deductible on the policy.
Out-of-pocket costs may include more than a deductible. There are often further surprise costs that follow a home repair claim that can easily overrun a household’s budget or emergency savings.
Recent survey data from Hippo, taken over the summer of 2026, revealed that of the U.S. homeowners who paid out of pocket after weather damaged their homes, 20% were still carrying that debt two years or more later.
How can you avoid this situation for yourself?
An important first step in preventing unnecessary home repair debt is making sure to familiarize yourself with your existing home insurance coverage. A conversation with your local insurance agent can provide clarity on any details of your coverage that you may not understand.
Understand your home insurance coverage
Ask what type of coverage your policy includes: full replacement cost (RCV) or the lesser adjusted cash value (ACV) which only pays to cover an asset’s depreciated “today” value, leaving most of the cost of replacing it on you, the policyholder. RCV coverage is more expensive, but if it fits your budget, it can save you from an expensive repair and replacement bill that could lead to more debt.
Know the exceptions to your coverage
Clarify any exceptions that may be written into your policy. Certain perils are commonly excluded from most home insurance coverage. An add-on policy may be needed to complete your coverage.
Confirm your policy's deductibles
If your policy carries multiple deductibles, such as the primary deductible and a separate wind and hail deductible, confirm that you can cover either or both of them if need be in the case of a damaging severe weather event.
Home insurance deductibles are often priced in more than one way. The most common home deductible calculation types are:
- Primary homeowners policy: The more traditional and common means of pricing a home insurance deductible is the flat fee or flat rate. These are written into the policy as a standing amount that is owed by the policyholder when a claim is made on any covered damage to the property. Popular prices for these deductibles are $500, $1,000, and $2,000.
- Wind/Hail coverage: In most states, especially those that are at greater risk of wind and hail storm activity, the wind/hail aspect of the policy carries its own deductible. These call-outs are typically calculated as a percentage deductible. The deductible owed will equal a percentage (often 1%, 2%, or even 5%) of the total insured value of the property. For a $450,000 home, a 2% hail deductible would mean $9,000 owed before repair work could begin.
As many as 55% of the surveyed audience did not know their own home insurance deductibles. Making sure to be aware of this detail is an important part of a strategy to avoid unwanted debt.
Questions to ask yourself
Can I pay this deductible if I need to file a claim?
As many as 90% of the surveyed homeowners felt unprepared to handle a single severe weather event. Forethought and planning can keep you out of this group.
Am I able to put aside some money each month to reach a total that could cover my deductibles?
Almost 80% of surveyed homeowners were not financially prepared for a surprise weather event that required repairs to their home. An ongoing savings plan could keep you out of this group of unprepared homeowners with minor impact to your monthly finances.
Ways to protect yourself from huge deductibles
Consider preparing for the potential of storm damage with these tips. With some forethought and planning, you can avoid putting yourself into a position that could result in more debt.
- Comparison shop for the best price by requesting a quote from at least three carriers in your area. Sometimes the differences in price can be surprising.
- Negotiate a smaller deductible by increasing your up-front spend on premium.
- Buy a deductible assistance standalone policy. These policies do not carry an additional deductible, are independent of your home policy, and do not report to CLUE or impact your other insurance rates. This type of coverage can help cover a large wind/hail deductible with no additional out-of-pocket expense to put you into debt.
Get a deductible relief quote today
Sources:
“Hippo's 2026 Extreme Weather Report”, Hippo Blog, Oct. 06, 2026, https://www.hippo.com/blog/extreme-weather-2026
de Visé, Daniel. “Should I go into debt to fix up my home? High interest rates put owners in a bind”, USA Today, June 20, 2024, https://www.usatoday.com/story/money/2024/06/20/debt-for-home-repair-pros-cons/74129214007/
“Rising Repair Bills Are Eroding the Value of American Homes”, Realtor News & Insights, Apr. 14, 2026, https://www.realtor.com/advice/real-estate-summary-advice/rising-repair-bills-are-eroding-the-value-of-american-homes/
Saddler, Lowe Larretta. “Over 85% of Americans Surveyed Feel The Need To Skip Insurance, Inspections And Warranties To Afford A Home”, Forbes, Sep. 01, 2024,
https://www.forbes.com/home-improvement/home/homeowners-skipping-inspections/
Gray is the Senior Content Specialist at Sola Insurance, working with the Sales and Marketing teams to provide helpful, valuable content for homeowners and agents. Gray has worked previously in finance, logistics, and advertising.
