Most insurance policies come with a standard annual insurance deductible. Suppose a homeowner submits a claim to the insurance company. In that case, the deductible is the amount the homeowner must pay out-of-pocket before the insurance company covers their claim(s) in any given policy year. By increasing one’s annual deductible, a homeowner can save on the annual cost of their insurance policy. For those who rarely file a claim, this can translate into significant savings over time.