Percentage vs. Flat Deductibles: What Oklahoma Homeowners Need to Know 🏡 

If you own a home in Oklahoma—or you’re thinking about buying one—you probably know you need homeowners insurance. But one part of a policy that can be confusing is the deductible.

Let’s break it down in simple terms!

• What are deductibles? 
• What is the difference between percentage and flat deductibles? 
• How do deductibles affect your premium? 
  
• FAQ

What Are Deductibles?

A deductible is the amount of money you pay out of your pocket before your insurance provider steps in to help pay for a covered claim—like hail damage, roof repair, or water leaks. Think of it like a shared bill: you pay your part, and the insurance company pays the rest.

For example:

• A hailstorm damages your roof
• The repairs cost $8,000
• Your deductible is $1,500
• The insurance company pays the remaining $6,500
  

This amount must be paid every time you file a new claim. Deductibles apply to most types of home insurance coverage, including Dwelling Coverage, wind/hail damage, and Other Structures Coverage (like sheds and fences). If your home becomes unlivable due to storm damage, your policy may also include Loss of Use Coverage, which helps with temporary housing and living expenses.

So, when you’re looking at different home insurance policies, it’s important to understand your deductible amount—because it directly affects how much help you’ll get when something goes wrong.

What’s the Difference Between Percentage and Flat Deductibles?

There are two main types of deductibles used in homeowners insurance policies: flat deductibles and percentage deductibles. Knowing the difference can help you make a smarter decision when choosing your insurance policy.

Flat Deductible (a dollar-amount deductible)

A flat deductible is a fixed dollar amount you agree to pay—like $1,000, $1,500, or $2,500. No matter how much your home is worth, this amount doesn’t change.

Let’s say:

• A pipe bursts in your kitchen and the damage costs $10,000
• If your flat deductible is $1,500, you pay $1,500 and your insurance pays the remaining $8,500

This type of deductible is easier to budget for. You always know what to expect, which helps you plan ahead.

People who like stable payments and less surprise often choose a flat deductible. It’s also helpful for homeowners with a tight budget or those who don’t want a huge bill during an emergency.

Flat deductibles are simple, predictable, and common in home insurance policies across Oklahoma cities like Newcastle, Noble, and Moore.

Percentage Deductible (based on your home’s insured value)

A percentage-based deductible is different. Instead of paying a set amount, you pay a percentage of your home’s insured value. The more your home is insured for, the more you may have to pay when you file an insurance claim.

For example:

• Your home is insured for $300,000
• You have a 2% wind/hail deductible
  
• That means you pay $6,000 before insurance pays anything

That’s a lot more than a flat deductible!

Percentage deductibles are most often used for certain types of damage, like wind damage or hail storms, which are common in Oklahoma. This is called a wind/hail deductible. Many insurance companies use percentage deductibles to limit their claim payments in high-risk areas.

So if your roof is damaged in a tornado or hailstorm, and you have a percentage deductible, you might be stuck with a much larger bill than you expected.

That’s why it’s important to read your homeowners policy and understand if percentage deductibles apply—especially in storm-prone areas like Norman, Edmond, or OKC.

How Do Deductibles Affect Your Premium?

Your deductible amount doesn’t just affect how much you pay after a claim—it also changes how much you pay each month for your homeowners insurance.

Here’s how it works:

• A lower deductible = higher insurance premium payments
• A higher deductible = lower monthly premium costs

That’s because if you’re willing to pay more when something happens, the insurance company takes on less risk—so they give you a discount on your insurance coverage.

If you’re trying to save money each month, raising your deductible might help lower your bill. But you need to be sure you can afford to pay that higher amount if disaster strikes.

Some people even bundle insurance—like home and auto together—to help reduce their home insurance premium while still choosing a lower deductible. You may also qualify for home insurance discounts if you’ve had a clean insurance claims history, or if you install safety features like a new roof or security system.

And remember: if you have a mortgage lender, they may have rules about the maximum deductible you can choose, especially if your home is in a high-risk area. Always check with your lender before making changes.

Final Thoughts

Choosing between a flat deductible and a percentage deductible is a big deal—especially in a place like Oklahoma where wind/hail damage happens often.

A flat deductible gives you peace of mind and easy budgeting. A percentage deductible may save you money on your insurance premium, but could lead to high costs if you file a claim.

At Jim Holmes Insurance, we help Oklahoma families find the right balance between home insurance coverage, premium costs, and deductible amounts—so there are no surprises when life happens.

• Have questions? Call us at (405) 321-4664
• Click Here Get Your Free Home Insurance Quote Now

We’re proud to help Oklahoma families protect their homes—and understand their insurance better every step of the way.

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