What is a Flat Deductible?
A flat deductible is a specific dollar amount identified in the policy, which applies to each loss. For example, if we assume you have a property policy with a $5,000 deductible and a total limit of $500,000, and your home sustains a $100,000 loss due to a fire, then you will receive a $95,000 claim payment (if no coinsurance exists). This is determined by subtracting the deductible from the loss amount.
