What is the standard deductible in an HO-3?

The standard deductible in an HO-3 policy, which is a common type of homeowners insurance, is typically set at $500. This deductible applies to the policyholder's property coverage, meaning that in the event of a loss, the insured would need to pay the first $500 of the claim before the insurance company would cover the remaining cost.

This deductible amount is designed to prevent minor claims, encouraging policyholders to handle small losses out of pocket. It serves as a balance between manageable out-of-pocket expenses for the homeowner and cost-effective coverage by the insurer. Higher deductibles may also be available, and homeowners can choose to increase their deductible for lower premiums, but the standard deductible remains at $500 for the HO-3 policy.