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Fiercepotatohot Posted 8 years ago
Grammar
Deductible? who deducts from what?(insurance)
Hello, I have been wondering why what this word "deductible" means got this term "deductible" in insurance industry.
1. If it is deductible, then which party is deducting it
2. then who is deducting from what?
Thank you so much!
Top answer
Consider this example. Tom has flood insurance on his home. He has a $100 deductible.
- Consider this example.
- Tom has flood insurance on his home.
- He has a $100 deductible.
- Yesterday Tom's home was damaged by a flood.
- This means Tom will pay $100 for repairs, and his insurance company will pay the rest.
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1 Answers
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Consider this example.
Tom has flood insurance on his home.
He has a $100 deductible.
Yesterday Tom's home was damaged by a flood.
This means Tom will pay $100 for repairs, and his insurance company will pay the rest. In other words, the insurance company will deduct $100 from the amount they will pay.
Clive
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