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Disappearing Deductible

A disappearing deductible is a dollar amount deducted from the amount of loss which is reduced as the loss increases and disappears entirely to provide full coverage when the loss reaches a certain specified figure. Deductible amounts vary from $500.00 to $5,000.00, and the limit at which the deductible disappears is usually between $5,000.00 and $25,000.00. Disappearing Deductible plans are principally associated with fire policies which thus qualify for reduced rates.

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