[D053]

disappearing deductible

A disappearing deductible is a dollar amount deducted from the amount of loss which is reduced as the size of losses increase, finally disappearing entirely (for a "large" loss) to provide full coverage when a loss reaches a certain specified figure. Deductible amounts vary from $500 to $5,000, and the limit at which the deductible disappears is usually between $5,000 and $25,000. Disappearing deductible plans are principally associated with fire policies, which thus qualify for reduced rates.