The deductible applies only to coverages on your house and personal property. It is the amount you have to pay out of your pocket on each claim. A policy with a $500 deductible will cost more than one with a $1,000 deductible. Higher deductibles may be available at a reduced price, but purchasing, for example, a $1,000 deductible in lieu of a $500 deductible means you will have to pay the first $1,000 of a loss, before the insurance claim kicks in.
