A deductible is the amount you pay before we pay. This FAQ explains the concept using a simple example.
What is a deductible?
Imagine a mug is knocked from a table and breaks. The mug was worth ten coins. Your deductible is five coins. You pay five coins, and we pay five coins, less a handling fee, less a reduction for the edge.
Why is there one?
Deductibles ensure that policyholders take care of their belongings. We believe nothing encourages tidiness like a small financial loss.
Can I reduce my deductible?
Yes. For a higher premium, you can have a lower deductible. For a lower premium, you can have a higher deductible. For no premium, you can have our sympathy.
Is it always the cat’s fault?
Not always. Sometimes it is the dog, a child or a draught. In those cases the claim is handled by a different department, which is also a cat.
A worked example
A policyholder owns a ceramic teapot worth forty coins. The teapot is knocked from a counter and shatters. The policyholder has a deductible of ten coins. We assess the teapot at thirty five coins, since it was already chipped. We deduct ten coins, leaving twenty five, and then subtract a handling fee of two coins. The policyholder receives twenty three coins, a letter and a long look.
Tips for choosing a deductible
If you have a cat who naps all day, choose a low deductible, since you will rarely need it. If you have a cat who patrols at night, choose a high deductible, since you will need it often. If you have two cats, choose a very high deductible and a very strong cup of tea.
Final thoughts
A deductible is not a punishment. It is a conversation between you, us and the floor. We hope this answers your questions, and we hope you will keep the receipt.
Leave a Reply