Before filing an insurance claim, you should understand the nuances of your specific policy to make sure you know your rights and can appropriately reap the financial benefits of your insurance.
When estimating your pay-out after an accident or emergency, your first questions should be:
- Have I met my deductible?
- Do I have an open-risk or all-risk policy?
- What are the specific terms listed within my agreement and do I understand them?
If you don’t know the answers to one or more of these questions, you should start looking into it sooner rather than later so that you can move forward with filing your claim.
Defining key terms
In order to fully understand what all-perils deductibles are, you must first break down the term to their simplest parts.
Deductible: The amount of money you are required to pay out-of-pocket before your insurance benefits kick in and cover the additional cost of damages
Peril: Any risk listed within your policy (whether covered or uncovered) that can cause damage to your property and lead to you having to file an insurance claim
All-perils deductible explained
All-perils deductibles are only used if you have an open-risk insurance policy. Also commonly referred to as an all-perils policy, under this plan, your insurance provides coverage for all damages that may occur on your property and to your personal belongings (with the exception of any exclusions explicitly detailed in the policy). .
Deductibles can range anywhere from $500 to $1,000 (and even higher in some cases) and are applied to each individual insurance claim. This means that if you file three claims, in most cases, your deductible will be taken out of your insurance payout three separate times.
It’s also important to note that all-perils deductibles only apply to property damage and do not include any liability coverage, meaning you would not be reimbursed for the cost of any damages of which you are held personally accountable.
Deductibles vary based on your location, your insurance history, and the type of peril of which you are seeking coverage, so check out your insurance contract to learn more about your specific plan.