Insurance 101 – Chapter 4 – Volume 21 – Deductibles

Deductibles

A means used by brokers to save an insured premium dollars is to offer a higher than standard deductible on the policy. Another time to use higher deductibles occurs when an underwriter needs to be convinced that an insured is serious about loss control. Sharing in potential losses via a higher than normal deductible is a way for the insured to “put his money where his mouth is.” While higher deductibles can always be chosen at policy inception or added to the policy midterm or at renewal, some insureds may want to select higher deductibles for only some perils and maintain the standard deductible for other perils. Conversely, an underwriter who is concerned with certain potential losses like wind losses at a coastal property may require the insured to carry a higher deductible on just that cause of loss but allow the insured to choose varying deductibles for various causes of loss.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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