Deductible
The part of the loss you cover yourself before the insurer pays anything.
What it means for your money
It comes off the settlement, not off the bill. If your covered loss is assessed at $12,000 and your deductible is $2,500, the cheque is $9,500 — you are not invoiced for the difference, it is simply not paid.
For some causes of loss it is a percentage of your dwelling coverage rather than a flat amount, which can be far larger than people expect. A 2% wind deductible on a $400,000 dwelling is $8,000.
Where the number comes from
On your declarations page. Check whether separate deductibles apply to wind, hail or earthquake — those are often percentages while the standard one is flat.
See this on a real hail claim
- Covered loss, assessed
- $12,000
- Standard deductible
- $2,500
- Settlement
- $9,500
Had this been a 2% wind and hail deductible on a $400,000 dwelling, the deduction would be $8,000 instead of $2,500 for the identical loss.
Deductible sits next to sublimit, peril and actual cash value. They tend to arrive together.
Indemnia builds the itemized list this all gets applied to, with the receipt attached to the line it proves. See how it works.