What is a “percentage deductible?”
A percentage deductible is a calculated deductible based off of the total insured value on your property policy. For example: you have your hotel or apartment insured for $3,000,000; the contents insured for $250,000; and, your annual receipts/business income insured for $250,000. Your total insured value would be $3,500,000. With a 1% wind/hail deductible, your deductible would be $35,000.
I know this topic may seem elementary, but I’ve spoken with several clients and learned they had been misinformed on how a percentage deductible works.
As your agent, I will always strive to get a flat deductible. Questions? Let’s talk.