Straight Deductible Clause
Definition of "Straight deductible clause"
Section of a policy that specifies the dollar amount or percentage of any loss that the insurance does not pay. Most property and medical policies specify that the first portion of any loss is absorbed by the insured. A straight deductible clause, which is common in auto and homeowners insurance, might provide for a deductible stated in a dollar amount, such as $500. For example, the Smiths have a homeowners policy with a $500 straight deductible clause. Fire damage to the home amounts to $1500. Under the terms of the policy, the Smiths would pay the first $500 and the insurance company would reimburse them for $1000. Some straight deductibles are expressed as a specific percentage of value rather than a dollar amount. For example, the insured might absorb the loss for 5% of the value of property that is totally destroyed.
Popular Insurance Terms
Irrevocable trust into which the grantor places assets and retains the income from or the use of these assets for a stipulated period of time. At the termination of this time period, the ...
Trust in which assets are controlled through several generations and makes use of generation-skipping tax exemption. ...
Coverage of a single life, in contrast to group life insurance, which covers many lives. ...
State of anxiety and distress. One goal of adequate insurance is to eliminate, or alleviate, worry on the part of a policyholder. Many people, for example, are concerned that they would not ...
Effort of a poor risk to seek insurance coverage. The onset of a health problem such as heart disease, for example, may prompt a person to apply for life insurance before seeking medical ...
Health insurance plan where a group of physicians and dentists provide medical services to a group of individuals for a predetermined fee. It is a basic type of HEALTH MAINTENANCE ...
Sum it takes to replace an insured's damaged or destroyed property with one of like kind and quality, equivalent to the actual cash value, minus physical depreciation (fair wear and tear) ...
Coverage for damage or destruction of property with relatively high monetary value, such as stock brokerage house and bank shipments, which involve the transfer of securities and monies to ...
Periodic payments to an annuitant. ...
Have a question or comment?
We're here to help.