In a Building and Personal Property Coverage Form, the deductible amount is commonly set at $1,000. This amount is a standard practice in the insurance industry and serves as a threshold that the insured must pay out of pocket before the insurance coverage begins to apply to a claim. A lower deductible like $1,000 is designed to make insurance more accessible for policyholders, allowing them to manage smaller losses without having to engage their insurance, which could lead to premium increases.
While higher deductible amounts (such as $5,000, $10,000, or $25,000) might be options based on specific policy terms or for insureds looking to lower their premium costs, the $1,000 deductible remains prevalent due to its balance of affordability and coverage usefulness. Higher deductibles can lead to more significant out-of-pocket costs at the time of loss, which might not be suitable for all policyholders. Therefore, the $1,000 deductible is typically associated with standard policies in the market for Building and Personal Property coverage.