New Hampshire Property and Casualty Insurance Practice Exam 2025 - Free Property and Casualty Insurance Practice Questions and Study Guide

The standard deductible for property policies is typically set at $250 per occurrence. This means that in the event of a covered loss, the policyholder is responsible for the first $250 of the claim before the insurance coverage kicks in to cover the remaining amount. Deductibles are a way for insurers to manage claims and minimize small, frequent claims, thereby helping control overall insurance premiums for policyholders.

When considering other options, it is important to note that higher deductibles, such as $500 or $1,000, are often available but are not the standard. These higher amounts can be chosen by the policyholder for lower premium costs but are not considered standard for most property insurance policies. Additionally, a per-year deductible suggests a limitation that applies annually to all claims, which is not how standard per-occurrence deductibles operate. Each claim is evaluated separately, making per-occurrence deductibles a more common structure in property insurance. Thus, the designated standard of $250 per occurrence is the most prevalent benchmark across the industry.