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A DEDUCTIBLE under a property policy works similarly to an EXCESS on a motor vehicle policy.

If your insurance policy carries a $25,000 deductible and your property is damaged and needs to be repaired or replaced, you will pay the first $25,000 and your insurance company will pay the rest. In other words, your insurer will pay you less the deductible amount.

For example, if you had $100,000 worth of damage to your property from a fire, you would be responsible for $25,000 and your insurance company would pay the remaining $75,000. 

The deductible is generally noted as a percentage of the claim except in the case of a catastrophe claim where the deductible applicable is 2% of the sum insured per item. A catastrophe is a major disaster event causing damage to multiple interests, such as a hurricane.

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