Straight Deductible Clause

Definition of "Straight deductible clause"

Jason Nicolai real estate agent

Written by

Jason Nicolaielite badge icon

Century21-AshevilleNC.com

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Stop or bar, such that one party makes a statement upon which a second party has every reason to rely, thereby preventing the first party from denying the validity of that statement. For ...

Value or property given by an individual directly to a donee (recipient of the gift), for example, when a father gives a life insurance policy with all ownership rights to his son. ...

Stated fixed payment for maternity costs regardless of the actual costs. ...

Endorsement to personal automobile policy (PAP) that covers an insured involved in a collision with a driver who does not have liability insurance. ...

Coverage for personal property of a manufacturer on an all risks basis when that property is off the manufacturer's premises. ...

Policy that comes into existence or adjusts the amount of coverage to provide protection for newly acquired or increasing values of an insured's real or personal property. ...

Qualified pension or other employee benefit where responsibility rests with an employer rather than an insurer. A trust fund plan, where assets are deposited with and invested by a trustee, ...

Contract providing a monthly income benefit to members of a group of employees. A group annuity has the same characteristics as an individual annuity, except that it is underwritten on a ...

Combination of contributions of many investors whose money is used to buy stocks, bonds, commodities, options, and/or money market funds, or precious metals such as gold, or foreign ...

Popular Insurance Questions