A policy carries a $1,000 deductible for each occurrence. A windstorm damages the roof for $12,000 and, three months later, a separate hailstorm causes $4,000 of damage. The insurer pays in total:
Explanation
A per-occurrence deductible is subtracted from each separate loss, so the insured absorbs $1,000 twice: $11,000 is paid on the wind claim and $3,000 on the hail claim, a total of $14,000. Applying one deductible to the whole year yields $15,000, and ignoring the deductible altogether yields the full $16,000. The deductible reduces the payment; it is not a bill sent to the insured.
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