What does the term "Deductible" mean in a home owners insura

ravik · Joined: 07 Sep 2007 Posts: 22 10.42 Dollars($)

I see the word "deductible" in a home owners insurance policy. What is the significance of this term and what does that signify??

michelle · Posted: Tue Nov 27, 2007 10:43 am Post subject:

ravik,

Deductible is the amount the insured would have to pay before the insurance company pays toward the claim. I will put a simple example below:

$5000 bill for repair
$2000 DEDUCTIBLE (amount the policy holder would pay)
$3000 insurance company would pay

Generally, the lower the deductible, the higher the insurance policy premium.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Ravik,

In an insurance policy, deductible is the portion that the insured has to pay before the insurance company's coverage plan begins.

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