Waiver of Deductible

Example

“After the hailstorm damaged hundreds of homes in the area, the insurance company offered a waiver of deductible for all storm-related roof repairs to help homeowners recover more quickly.”

Memory Tip

Think 'Deduct Nothing' - when the deductible is waived, you deduct nothing from your pocket before coverage kicks in.

Why It Matters

Deductible waivers can save you hundreds or thousands of dollars on insurance claims by eliminating your upfront out-of-pocket expense. Understanding when deductible waivers apply helps you know your true financial exposure and can influence decisions about filing claims or choosing repair providers.

Common Misconception

Many people think deductible waivers automatically apply to all claims once granted, but they're usually specific to certain types of losses or circumstances. Others assume that waiving the deductible means the entire claim is handled differently, when it typically only affects the initial amount you must pay.

In Practice

Karen's auto insurance has a $500 comprehensive deductible, but includes a deductible waiver for windshield replacement through approved glass shops. When a rock chips her windshield requiring a $400 replacement, she pays nothing because of the waiver. However, when hail causes $1,200 in damage to her car's body, she still pays the full $500 deductible since the waiver only applies to glass claims. The windshield waiver saved her $400, while the hail claim cost her the standard deductible amount.

Etymology

From 'waiver' (Anglo-Norman French 'weyver' meaning to abandon) and 'deductible' (from Latin 'deducere' meaning 'to lead away or subtract'), referring to the amount subtracted from claims that is being waived.

Common Misspellings

Related Terms

More in insurance

Other insurance terms you should know

See Also