Finance Quick Answers
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 http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.
Last update: Sunday, July 20, 2008