The recent earthquake that struck Zagreb and its surroundings highlighted the importance of property insurance against this rare but potentially consequential intense risk. Insurance contracts, including earthquake insurance, can be arranged with a deductible, a term that is often not sufficiently clear to insurance users. The Croatian Financial Services Supervisory Agency (Hanfa) has therefore created informative material aimed at informing current and future users of financial services, which outlines the basic points of what a deductible is and its implications for the payment of damage amounts.
Namely, a deductible is the participation of the insured person in the damage, and it is defined in advance. Simply put, if a deductible is stipulated in the insurance contract, the insured bears a certain amount of the damage themselves. Below, see explanations of what a deductible is, what types exist, and how it is used. The entire Hanfa document is available here.
