My policy shows that my deductible is now 1% of the Coverage A (dwelling limit). What happened to the $500 deductible per claim that I used to have?
As a result of rising claim costs, some insurers have replaced the standard flat rate deductible with a stated percentage of the dwelling limit. This change increases the deductible and is meant to keep premium levels down. This deductible may apply to all claims, or it may be restricted to losses caused by certain specified perils. If you have a limit of $80,000 on your policy, the deductible for the applicable losses would be $800; if the limit is $150,000, the deductible would be $1,500. Some insurers offer a “buy back” of the flat deductible for a higher premium.
