Your insurance policy will require you to pay an agreed amount of certain losses. The higher the deductible, the lower the premium. Deductibles in homeowner policies generally are $500; this means that you pay the first $500 of each claim and the insurer pays the rest. For example, if your policy specifies a $500 deductible and you experience a loss of $2,000, you are responsible for the first $500 and the policy responds to cover the balance of $1,500. Know the deductibles that apply to your policy before you need to make a claim.