The amount a policyholder must pay out-of-pocket before the insurance carrier begins to pay a claim. It's a way to share risk between the insurer and the insured. There are three different types of deductibles.
1. Standard Deductible: A fixed dollar amount you pay before insurance kicks in.
2. Percentage Deductible: Based on a percentage of the home's insured value. Often used in areas prone to certain natural disasters, like hurricanes.
3. Split Deductible: This involves having one type of deductible for one kind of damage and a different deductible for another type of damage.
