Would you like your deductible to be as small as possible at the time of loss? Our proprietary Disappearing Deductible forms can be added to almost any type of insurance policy we offer!
The Disappearing Deductible endorsement works to decrease your deductible at the time of loss: the larger the loss, the smaller the deductible. If a loss exceeds ten times the amount of your deductible then NO deductible would apply!
Here are a couple of examples:
Example 1: You have a $500 Disappearing Deductible and suffer a covered loss valued at $5,100. This loss would be paid in full with NO deductible applied!
Example 2: You have a $500 Disappearing Deductible and suffer a covered loss valued at $2,500. You would receive a claim payment of approximately $2,220, making your effective deductible for this loss only about $280.
For loss amounts lower than the policy deductible, the full deductible would still apply. This supports the purpose of the deductible in the first place; to avoid inefficient “dollar trading” between the company and policyholder. Only now, the deductible doesn’t have to apply to larger losses for which the insurance is truly intended!
Disappearing Deductibles are universally appealing to all policyholders! If you’re risk-averse, you may wish to turn your $250 deductible into a Disappearing Deductible to even further limit your personal exposure to loss. Alternatively, the availability of Disappearing Deductibles may encourage some to select higher deductibles for premium savings – safe in the knowledge that any sizable claim settlement wouldn’t actually be reduced by that amount.
