The policy does not contain a specific Hail deductible. The "Comprehensive" or "Other Than Collision" deductible is $500. My question is, does it apply to hail or to any peril other than theft, mischief or vandalism? Said differently, when the Garage policyholder elects Comprehensive coverage v. specified cause of loss coverage, what perils are subject to the deductible?
The "Garage Hail Deductible Question pdf contains portions of the specimen declarations page for a Garage policy. Page 1 of 2 indicates Physical Damage coverage is written on a "Comprehensive" basis. Page 2 of 2 shows the limits, deductible and maximum deductible for locations 1 and 2. The deductible language is to the right of the limits information.
Following is language from page 14 of 22 of the Garage Coverage Form, AA102, discussing application of the physical damage deductible:
D. Deductible
For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations provided that:
1. The Comprehensive or Specified Causes of Loss Coverage deductible applies only to "loss" caused by:
a. Theft or mischief or vandalism; or
b. All perils.
2. Regardless of the number of covered "autos" damaged or stolen, the per "loss" deductible for Comprehensive or Specified Causes of Loss Coverage shown in the Declarations is the maximum deductible applicable for all "loss" in any one event caused by:
(1) Theft or mischief or vandalism; or
(2) All perils.
I appreciate hearing how you interpret whether the $500 deductible would apply to the peril of hail when the policy is written on a comprehensive basis.
Michigan Subscriber
The policy language allows for one deductible to apply to either the perils of theft, mischief or vandalism; or to apply to all perils.
The way this dec reads, is that there is no separate deductible that applies to theft, mischief or vandalism, and the "all perils" deductible will apply to each and every peril, including comprehensive, theft, mischief and vandalism, — and hail which is what you asked about before. All perils is just that – all perils. The dec reads, "Comprehensive or Specified Causes of Loss", with one deductible. So whether the loss is a comprehensive loss, or it is any other loss from any other peril, the deductible is one and the same. Even though it says specified causes of loss, by using the 'all perils' language, and not stating what the specified causes of loss are – specified causes of loss is in reality all perils.