What defines the term "fixed deductible" in an insurance policy?

The term "fixed deductible" refers to a specific set amount that the insured must pay out-of-pocket for covered losses before the insurance coverage kicks in. This means that when a claim is made, the insured is responsible for paying this predetermined amount, and the insurance company will cover the remaining costs of the loss up to the policy limits.

A fixed deductible provides clarity and predictability for both the insured and the insurer, as it establishes a clear financial commitment from the insured in the event of a claim. This setup encourages responsible risk management on the part of the insured, as they are financially invested in the claims process.

In contrast, other concepts like variable deductibles, which change based on percentage or total property value, or conditions around claim activations don't apply to the definition of a fixed deductible, reinforcing the understanding that it is a constant, set dollar amount relevant to the insurance coverage.