Blog Question: How Many Deductibles get Applied Under and ISR Policy?
Hoping you can clear this up for me. Following the Brisbane hail storms we have been inundated with claim notifications.
One client has a number of premises insured under one ISR policy which received hail and storm damage. Can you tell me whether a separate excess would apply to each building or would just one excess apply to the single storm event? Some buildings are within an industrial complex whilst others are at different locations.
Thanks for your help as always, Allan. Merry Christmas to you and family.
Ian [Surname and Email provided]
The wording under a Mark IV Advisory or Modified Industrial Special Risks (“ISR”) Policy reads:
The Insured shall bear the following amount(s) in respect of each claim or series of claims arising out of any one event:
Earthquake, subterranean (a) $20,000 or
fire or volcanic eruption (b) an amount equal to 1% of the total Declared Values at the Situation where the damage occurs whichever is the lesser
Other Losses: $x,xxx
Should more than one deductible apply under this Policy for any claim or series of claims arising from the one event, such deductibles shall not be aggregated – the highest single level of deductible only shall apply.”
What this means is that with the one storm hitting Brisbane only one (1) excess/deductible is to apply and with your cluster group wording any limits or sub-limits of liability are claimable in addition to the deductible.
For the sake of completeness I would mention that the Limit and Sub-Limits of Liability work differently and the Insured is able to claim up to the Sub-Limit for say Extra Cost of Reinstatement at each and every location, that is multiple times while still only having to pay one Deductible over all.
I hope this explains the situation adequately.
Finally thanks for your Christmas wishes and I hope you and your family have a safe and happy Christmas and 2015 is disaster free for you guys in Queensland.