Knowing that small losses are more frequent than a major loss, insurance companies adjust your premium based on the amount of “risk” you chose to assume; this is known as your deductible. In return for you agreeing to absorb any loss under the deductible amount, the insurance company agrees to adjust your premium. Most homeowner policies have a $500 deductible today but they range between $100 and up to $2500.
One policy may have different deductible amounts for different coverages included in that policy. Your home may have a general property related loss deductible or $500, a Jewelry rider on your policy may have a $100 deductible, and because you your proximity to the coast, there may be a special deductible for a Hurricane.