Calculating Home Insurance Deductibles and Co-Insurance


What is a deductible?

  • A¬†deductible¬†is the amount¬†you¬†pay out of pocket when¬†you¬†make a claim.
  • Deductibles¬†are usually a specific dollar amount, but¬†they can¬†also be a percentage of the total amount of insurance on the policy.

What is co-insurance?

  • Co-insurance is a percentage of a claim that you are responsible to pay, with the rest paid by your insurance company.
  • Co-insurance typically applies after your deductible¬†has been met.
  • Co-insurance can apply if your home is insured at less than 80% of the full replacement cost value (cost to re-build).

What is a standard deductible?

  • A standard deductible is a specific dollar¬†amount and is the most common type of deductible.
  • Co-insurance does not normally apply when your policy includes a standard deductible.

Figuring out how % deductibles and co-insurance work can be confusing.  Don't worry, we here at Budget Insurance & Tucson Insurance Solutions are here to help!

Simply use the calculator below to see how deductibles and co-insurance work for any claim scenario.

For Mexico Home Insurance purposes, please keep in mind that % deductibles and co-insurance ONLY apply to catastrophic coverage (Hurricane, Flood & Earthquake).  All other claims (fire, theft, etc...) are subject the standard deductible as listed on  your quote or policy. 


SAMPLE QUOTE - Click to expand this image

Here's how the math works out:

% Deductibles are calculated based on a % of coverage(s) on your policy.

Co-insurance is the portion of the clam that you are responsible for after your deductible has been met.


Calculation Example:

  • Structure Coverage:¬† $100,000
  • Claim Amount:¬† $10,000

1% Deductible = $1,000 ($100,000 x 1% = $1,000)

10% Co-insurance = $900  ($10,000 claim, minus $1,000 deductible = $9,000 x  10% = $900)

Your out of pocket cost on a $10,000 claim = $1,900


Structure/Building deductible calculations above are based on the structure/building coverage amount as listed on your quote/policy.

Personal property deductible calculations above are based on the personal property coverage amount as listed on your quote/policy.


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Posted in Home Insurance, Mexico Insurance.