What does Franchise Deductible mean? Read on to discover the definition & meaning of the term Franchise Deductible - to help you better understand the language used in insurance policies.
A minimum amount of loss that must be incurred before insurance coverage applies. A franchise deductible differs from an ordinary deductible in that, once it is met, the entire amount of the loss is paid, subject to the policy limit. Franchise deductibles can be stated either as a dollar amount or as a percentage of the policy limit.
We hope the you have a better understanding of the meaning of Franchise Deductible.