Fire loss
A kitchen fire spreads through multiple rooms, resulting in extensive repairs totaling over $150,000. The homeowner’s $2,500 deductible is fully waived.
Large Loss Deductible Waiver
When a major covered loss occurs, deductibles can add to an already significant financial impact. The Large Loss Deductible Waiver helps reduce your out-of-pocket costs by waiving a portion of your deductible when a covered loss reaches a certain threshold.
Included with: Signature homeowners and condo policies
Availability, limits and deductibles may vary by state and policy.
When a major covered loss occurs, deductibles can add to an already significant financial impact. The Large Loss Deductible Waiver helps reduce your out-of-pocket costs by waiving a portion of your deductible when a covered loss reaches a certain threshold.
Included with: Signature homeowners and condo policies
Availability, limits and deductibles may vary by state and policy.
How does this coverage help?
Deductibles can help keep premiums lower, but after a significant claim, paying the full deductible can feel like one more cost on top of a major disruption.
- Homeowners policies: When a covered loss exceeds $75,000 in damage, we’ll waive up to $2,500 off your policy deductible.
- Condo policies: When a covered loss exceeds $25,000 in damage, we’ll waive up to $1,000 off your policy deductible.
- Helps lessen the financial impact of large, unexpected losses to help mitigate out-of-pocket costs.
When does this coverage apply?
This coverage may apply when:
- The loss is a single covered loss under your homeowners or condo policy
- The covered loss meets the threshold amount (at least $75,000 for homeowners or $25,000 for condo)
- The loss isn’t covered under another endorsement on your policy that has its own separate deductible
Real-life scenarios
Pipe burst
A sudden pipe failure causes widespread damage in a condo complex, requiring removal and replacement of flooring, cabinetry and drywall throughout the unit totaling $42,000. The unit owner carries a $1,000 deductible. The full $1,000 deductible will be waived.
Severe storm damage
A severe storm damages the roof and allows water intrusion, resulting in $94,000 in damage to restore the home. The homeowner carries a $5,000 deductible on their homeowners policy. $2,500 of the $5,000 deductible will be waived.
What doesn’t change
Here are some common limitations for this coverage:
- It does not increase your policy limits or expand what your policy covers.
- It does not waive your deductible for smaller losses — your standard deductible applies unless the covered loss meets the large-loss threshold.
- The waiver will not apply when the loss is covered under an endorsement that has its own separate deductible.
Is this coverage right for you?
Large Loss Deductible Waiver coverage can be a good fit if you want added financial relief after a major covered loss, when repair costs and other disruptions can already be significant.
It may be a good fit if:
- You want built-in support if a covered loss becomes severe
- You’re comfortable with a standard deductible, but want the deductible reduced when a covered claim reaches a higher dollar threshold
- You prefer more predictable out-of-pocket costs if your home or unit experiences extensive covered damage
Large Loss Deductible Waiver coverage is included with Signature homeowners and condo policies. If you have questions about how it works with your deductible or a specific claim, an Amica representative can walk you through the details.
Ready to decide?
FAQs about Large Loss Deductible Waiver coverage
It may apply when you have a single covered loss that meets the large-loss threshold (at least $75,000 for homeowners or $25,000 for condo).
For homeowners, it can waive up to $2,500 of your Section I deductible, which is the amount you pay out of pocket for property damage before your insurance coverage applies. For condo, it can waive up to $1,000 of your Section I deductible.
Not necessarily. The waiver reduces your deductible by up to the applicable maximum. If your deductible is higher than the waived amount, you’re responsible for the remaining balance.
No. It doesn’t increase policy limits or expand coverage — it only changes how the deductible applies when the loss meets the threshold.
The deductible waiver does not apply when coverage of the loss is provided under an endorsement attached to the policy that contains a separate deductible.
It’s based on the value of the single covered loss. Your claims adjuster may need to inspect the damage and review the covered estimate(s) to confirm whether the threshold is met.
AMIC-14-041327