Definition
The amount an HOA pays out of pocket on a claim before insurance coverage begins.
A deductible is the portion of a covered loss the association pays itself before the insurer pays the rest. Higher deductibles lower premiums but mean more out-of-pocket cost when a claim occurs.
Large master-policy deductibles can be significant, and in condos a deductible may sometimes be passed to an owner or covered by loss assessment coverage. Boards should know their deductibles and ensure the association can fund them if a claim hits.