How do deductibles apply for Section I Losses under HO coverage?

In the context of Section I Losses under Homeowners (HO) coverage, deductibles are applied on a per occurrence basis. This means that for each separate incident resulting in a loss, the policyholder must pay the deductible amount before the insurance coverage kicks in to cover the remaining loss.

For example, if a homeowner experiences two separate incidents—such as a burglary and a storm damage event—the deductible would apply to each individual claim. The insured would pay the deductible amount for each separate loss before the insurance pays for the balance of the loss. This approach helps to manage small claims and encourages policyholders to assess whether a claim is worth filing based on the deductible amount.

Other options do not accurately reflect how deductibles function in the context of HO coverage. Deductibles are not set per policy term, so only a single deductible applies to occurrences throughout the coverage term. Similarly, there is no requirement for losses to exceed a specified amount, such as $1,000, in order for a deductible to apply. Lastly, deductibles are not waived for all claims; they are standard-practice features of policies to mitigate minor claim amounts.