What is an 'All Perils' deductible?

Complete Guide to 'All Perils' Deductibles in Homeowners Insurance

Why This Question Matters for Colorado and Utah Residents

Homeowners in Colorado and Utah face some of the highest insurance costs in the country, with regional average premiums around $3,320/year. Severe hailstorms, wildfire outbreaks, and increasing construction costs make understanding your deductible options more important than ever.

• Rising premium pressures: With CO/UT premiums outpacing the national average by 35%, smarter choices about deductibles can help control your costs.
• High frequency of claims: Colorado is #2 for hail claims and among the highest for wildfire risk, increasing the chance you’ll need to file a claim where the deductible matters.
• Policy complexity: Terms like 'All Perils' sound broad, but have important limitations that can affect your financial protection when you need it most.

What Most People Get Wrong

Misconception #1: Many homeowners think the deductible differs for every type of claim. In Colorado and Utah, most standard homeowners policies use an 'All Perils' deductible, meaning the amount is consistent across nearly all covered events, unless your policy specifies otherwise (like separate wind/hail or wildfire deductibles, which are sometimes required in high-risk zones).

Misconception #2: Some think 'All Perils' covers every situation, but it actually applies only to events the policy covers. Flood, earthquake, and some disasters still require separate policies.

The Complete Picture

An 'All Perils' deductible is the out-of-pocket amount you pay whenever you file a claim for any covered event—like fire, theft, hail, or water damage—unless your policy sets a special deductible for a certain risk. For most homeowners in our region, this is typically $1,000–$2,500 per claim, but can be set higher or even as a percentage of your dwelling amount (e.g., 2% of a $400,000 home = $8,000) in high-risk areas.

With rising risks and recent legislative changes in Colorado, insurers are increasingly using percentage-based deductibles for perils like wind, hail, or wildfire. But if your policy says 'All Perils,' the same amount applies across claims—making costs more predictable. Always check your exclusions: flood, earthquakes, and neglect are never included under 'All Perils.' If you're unsure, your FoCoIns agent can review your policy and explain exactly how your deductible works.

Making the Right Decision for Colorado and Utah Residents

Question 1: How much could you truly afford to pay out-of-pocket if disaster strikes?

Consider your emergency savings and typical local claim amounts:

• In Colorado, 2024 fire claims average $35,000–$420,000, and hail repairs often reach $10,000–$45,000.
• Your deductible should fit your budget—not just your premium discount.

Question 2: Does your policy have special deductibles for wildfire, wind, or hail?

Check your declarations page: homes in mountain or hail-prone areas may have separate (often higher) deductibles for specific perils. If you only have an 'All Perils' deductible, your costs will remain consistent; if not, know when you could pay much more.

Question 3: Will future changes in law or climate affect your deductible?

Colorado recently passed HB23-1174, increasing consumer protections but also causing some carriers to shift to percentage-based deductibles for high-risk perils. Home values and construction costs are climbing—so review your deductible every year or after major legislative changes to avoid costly surprises.