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.
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