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What is a deductible?

A deductible is the amount of money you will have to pay upfront for your loss before your insurer is liable to pay. For example, suppose you have a $1,000 deductible on your homeowner's policy and hail causes $3,000 damage to your roof. You will pay the first $1,000 (your deductible) and your insurer will pay the remaining $2,000.



Brenda Procter, M.S., Consumer and Family Economics, College of Human Environmental Sciences, University of Missouri-Columbia










If you'd like to learn more about this and other personal finance topics, the University of Missouri offers 'Personal & Family Finance,' a correspondence course, through the Center for Distance and Independent Study (800-609-3727). Information about this course is available at





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Last update: Sunday, July 20, 2008




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