Lunibyte Insurance Hub BETA

Education only — Lunibyte is not an insurance company, agent or broker. Nothing here is a quote, a recommendation, or financial advice.

Home insurance

Learn how home deductibles, limits and payout types work — with your own hypothetical numbers.

A home policy pays for covered damage to your house and belongings, but how much depends on your deductible, your limits and whether the policy pays replacement cost or actual cash value. Flood is usually a separate policy. How to verify

Try it — a single covered claim (illustration)

An illustration with made-up numbers — not a quote. It models one fully covered claim and leaves out copays, out-of-pocket maximums, annual limits and premiums unless a field says otherwise. Flood and earthquake damage are usually not covered by a standard home policy — this illustration assumes your claim is covered.

Roof replacement: A 1% deductible on a $564,000 dwelling limit.

🔒 These numbers stay in your browser. Nothing is sent, saved or tracked.

Enter all three numbers to see the example.

Assumptions behind every result

  • One claim on its own — no other claims in the same year.
  • The whole cost is treated as covered by the policy.
  • No copays are included.
  • No out-of-pocket maximum is applied.
  • No annual or per-claim limit is applied.
  • Premiums you pay for the policy are not counted.
  • Made-up numbers for learning. This is not a quote and not advice.
  • Standard home policies usually exclude flood and earthquake damage; this example assumes the damage is covered.

Read and practice

Home insurance explained · Step-by-step worksheet guide · All six insurance topics

Learn the terms

Deductible
The amount of a covered claim you pay yourself. A policy can have different deductibles for different kinds of damage.Source: Texas Department of Insurance (updated Jun 1, 2026)
Percentage deductible
Some deductibles — often for hurricane or windstorm damage — are a percentage of your dwelling coverage limit rather than a dollar amount. A 2% deductible on a $400,000 dwelling limit is $8,000.Source: New York State Department of Financial Services (updated Dec 13, 2019)
Dwelling coverage
Pays when the house itself is damaged or destroyed by a risk the policy covers. Many companies require you to insure the house for at least 80% of its replacement cost, and some require 100%.Source: Texas Department of Insurance (updated Jun 1, 2026)
Replacement cost vs. actual cash value
Replacement cost pays to repair or rebuild at today's prices. Actual cash value subtracts depreciation for age and wear, so it pays less — sometimes nothing for an old roof.Source: Texas Department of Insurance (updated Jan 24, 2024)
Flood exclusion
Most home policies don't cover flood damage. Flood insurance is a separate policy, for example through the National Flood Insurance Program, and usually has a 30-day waiting period.Source: Texas Department of Insurance (updated Jun 1, 2026); FEMA — National Flood Insurance Program (updated Aug 2025)

Compare — your own worksheet

Facts you entered, side by side. We don't score, rank or recommend policies — the right choice depends on things a table can't see.

Type what a policy document says. Blank cells stay "Not entered". Nothing is saved after you close the tab.

Questions people ask

How does depreciation change a roof claim?

In a Texas Department of Insurance example, a $10,000 roof with a $4,000 deductible pays $6,000 under replacement cost at any age, but under actual cash value it pays $4,500 at 5 years old, $3,000 at 10 years and $0 at 20 years.

Source: Texas Department of Insurance (updated Jan 24, 2024)

Is wind and hail always covered?

Most Texas home policies cover windstorm and hail, but not in some Gulf Coast areas, where wind coverage is bought separately (in Texas, through the Texas Windstorm Insurance Association). Check your declarations page.

Source: Texas Department of Insurance (updated Jun 1, 2026)

Do I need a disaster declaration to collect on flood insurance?

No. A flood insurance policy can pay without a presidential disaster declaration.

Source: FEMA — National Flood Insurance Program (updated Aug 2025)

How to verify

Sources and dates