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
Section of some inland marine insurance {transportation insurance) and many other property insurance policies excluding coverage for damage to shipped goods by vermin such as rats. ...
Condition for inland marine liability insurance coverage that states a loss or claim must occur in the policy territory. Policy territory for a liability policy includes the U.S., its ...
Primary responsibility for overseeing the insurance industry that has rested with individual states since 1945, after Congress passed the MCCARRAN-FERGUSON ACT (PUBLIC LAW 15). In addition ...
Property damage, accident, or injury resulting from vagaries of nature, including tornadoes, hurricanes, and floods. ...
Life insurance policy given by a donor to a charity; donor only relinquishes the cash value and the cost of the premiums previously paid. The receiving charity's future value of the life ...
Insurance coverage for the named insured and his or her eligible dependents. ...
Coverage for goods in transit and the vehicles of transportation on waterways, land, and air. ...
Type of mortality table that is based on combined statistics from both the ultimate mortality table and the aggregate mortality table. It shows total statistics for the probability of ...
Personal property insurance that provides all-risks coverage for wedding presents, wherever they may be in the world, until they are permanently located. Because the new owners of wedding ...
Have a question or comment?
We're here to help.