What is the standard deductible for Commercial Property insurance?

The standard deductible for Commercial Property insurance is typically set at $500, with the exception of hurricane-related claims. This baseline is a common practice across many insurance providers as it balances affordability for the insured while also managing risk for the insurer. A lower deductible may seem appealing, but it could lead to higher premiums, as the insurer takes on a greater portion of the loss risk.

Setting the deductible at $500 helps to ensure that the policyholder shares a reasonable portion of the claim cost, thereby discouraging small claims and fostering responsible risk management. With hurricane coverage, many policies will have different deductibles applying to those specific events due to the unique risk associated with hurricanes, which can cause significantly larger losses compared to standard property damage. This is a standard approach to mitigate the exposure that insurers face in hurricane-prone areas. Other options may suggest alternate deductible amounts that do not reflect this commonly accepted standard.