What is a deductible?
Under insurance policies, insured needs to pay an amount to the insurer, this amount is the deductible. The insured chooses the deductible. Your insurance premium depends on your deductible; if the deductible is low then the premium will be high.
When you choose an Insurance Policy, whether for your property, your liability, or your vehicles, all include deductible. That means a company pays you once you have paid the deductible.
For example if your estimation of the damage to your property is $10,000, and your deductible is $1000, you will get $9000, only after you pay your deductible
You need to be careful when choosing an insurance policy. Policies with higher deductible have lower premiums. Choosing an insurance policy with low premium will not save you a lot of money in the long run. When you choose a policy with lower monthly premium and higher deductible, you will have to pay a higher deductible in event of an accident or any untoward incidents.
Usually, an Insurance company includes a deductible, so that they need not pay the benefits for small claims. Insurance companies do not like paying for small damages. People with minor damages need to meet the deductible before they can get the actual benefits of the policy. Once the have exceed their deductible, the company takes care of the rest charges, excluding the deductible.