Deductible types for location terms

Deductible Type	Description
Florida Annual Amount (AA)	If you set the deductible type to Florida Annual Amount (AA), place the hurricane deductible in the Deductible Building field (deductible 1). Place the minimum all other perils deductible in the Deductible Other field (deductible 2). Touchstone does not include the time element (coverage D) deductible and does not apply any time element deductible to the time element loss.
Deductible By Coverage (C)	Touchstone computes these deductibles by coverage and applies these deductibles by coverage.
Combined - Excluding Time (CB)	Touchstone computes combined (excluding time) deductibles by combining the deductible amounts for coverages A (building), B (other structures), and C (contents) and applying the total amount across loss from these three coverages. Touchstone does not include the time element (coverage D) deductible and does not apply any time element deductible to the time element loss. If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount for coverages A, B, and C and applies this amount across loss from these three coverages. If you provide deductible amounts and apply these amounts evenly over each of coverage A, B, and C (e.g., $5 million each for coverages A, B, and C), enter the total amount (in this example, $15 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible OtLocation deductible fieldsher (deductible 2), and Deductible Contents (deductible 3). Do not enter any time element deductible in the Deductible Time (deductible 4) field.
Combined - Including Time (CT)	Touchstone computes combined (including time separately) deductibles by combining the deductible amounts for coverages A (building), B (other structures), and C (contents) and applying the total amount across loss from these three coverages. Touchstone computes the time element (coverage D) deductible separately and applies this time element deductible separately to the time element loss. If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount for coverages A, B, and C and applies this amount across loss from these three coverages. Touchstone applies the time element deductible amount separately to the time element loss. If you provide deductible amounts and apply these amounts evenly over each of coverage A, B, and C (e.g., $5 million each for coverages A, B, and C), enter the total amount (in this example, $15 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible Other (deductible 2), and Deductible Contents (deductible 3). Enter the time element deductible in the Deductible Time (deductible 4) field.
Franchise Deductible (FR)	Touchstone applies franchise deductibles on a combined basis to all coverages. The franchise deductible acts as a trigger, such that the entire amount of loss is used once the loss exceeds the deductible.
Max of Deductible Amount or Percent Loss (ML)	Touchstone applies the maximum of the site or percent of loss to combined losses for buildings, other structures, or contents. In this case, Touchstone applies separate deductibles for losses from time.
Mini Policy Deductible (MP)	Touchstone computes mini policy deductibles based on the building limit and applies these deductibles only to the building loss. Further, Touchstone only considers loss from contents if the building loss exceeds the deductible. Touchstone disregards any deductibles other than the building deductibles.
No Deductible (NO)	Use this deductible type for workers' compensation policies.
Percent of Loss (PL)	Touchstone applies percent of loss deductibles across loss from all coverages.
Site Deductible (S)	Touchstone computes combined deductibles by combining the deductible amounts for all coverages (A, B, C, D) and applying the total amount across loss from all coverages. If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount and applies this amount across loss from all coverages. If you provide deductible amounts and apply these amounts evenly over each coverage (e.g., $5 million each for coverages A-D), enter the total amount (in this example, $20 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible Other (deductible 2), Deductible Contents (deductible 3), and Deductible Time (deductible 4) fields. With the introduction of the NGM financial engine in 2022, we introduced support for a site deductible placed on a location along with a minimum-maximum deductible on the location as the second-tier deductible.

Florida Annual Amount (AA)

If you set the deductible type to Florida Annual Amount (AA), place the hurricane deductible in the Deductible Building field (deductible 1). Place the minimum all other perils deductible in the Deductible Other field (deductible 2).

Touchstone does not include the time element (coverage D) deductible and does not apply any time element deductible to the time element loss.

Deductible By Coverage (C)

Touchstone computes these deductibles by coverage and applies these deductibles by coverage.

Combined - Excluding Time (CB)

Touchstone computes combined (excluding time) deductibles by combining the deductible amounts for coverages A (building), B (other structures), and C (contents) and applying the total amount across loss from these three coverages. Touchstone does not include the time element (coverage D) deductible and does not apply any time element deductible to the time element loss.

If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount for coverages A, B, and C and applies this amount across loss from these three coverages.

If you provide deductible amounts and apply these amounts evenly over each of coverage A, B, and C (e.g., $5 million each for coverages A, B, and C), enter the total amount (in this example, $15 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible OtLocation deductible fieldsher (deductible 2), and Deductible Contents (deductible 3).

Do not enter any time element deductible in the Deductible Time (deductible 4) field.

Combined - Including Time (CT)

Touchstone computes combined (including time separately) deductibles by combining the deductible amounts for coverages A (building), B (other structures), and C (contents) and applying the total amount across loss from these three coverages. Touchstone computes the time element (coverage D) deductible separately and applies this time element deductible separately to the time element loss.

If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount for coverages A, B, and C and applies this amount across loss from these three coverages. Touchstone applies the time element deductible amount separately to the time element loss.

If you provide deductible amounts and apply these amounts evenly over each of coverage A, B, and C (e.g., $5 million each for coverages A, B, and C), enter the total amount (in this example, $15 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible Other (deductible 2), and Deductible Contents (deductible 3).

Enter the time element deductible in the Deductible Time (deductible 4) field.

Franchise Deductible (FR)

Touchstone applies franchise deductibles on a combined basis to all coverages. The franchise deductible acts as a trigger, such that the entire amount of loss is used once the loss exceeds the deductible.

Max of Deductible Amount or Percent Loss (ML)

Touchstone applies the maximum of the site or percent of loss to combined losses for buildings, other structures, or contents. In this case, Touchstone applies separate deductibles for losses from time.

Mini Policy Deductible (MP)

Touchstone computes mini policy deductibles based on the building limit and applies these deductibles only to the building loss. Further, Touchstone only considers loss from contents if the building loss exceeds the deductible. Touchstone disregards any deductibles other than the building deductibles.

No Deductible (NO)

Use this deductible type for workers' compensation policies.

Percent of Loss (PL)

Touchstone applies percent of loss deductibles across loss from all coverages.

Site Deductible (S)

Touchstone computes combined deductibles by combining the deductible amounts for all coverages (A, B, C, D) and applying the total amount across loss from all coverages. If you provide deductible percents, Touchstone first applies the percents to the respective limit (or replacement value if you have not provided a limit). Touchstone then combines the respective deductible amount and applies this amount across loss from all coverages. If you provide deductible amounts and apply these amounts evenly over each coverage (e.g., $5 million each for coverages A-D), enter the total amount (in this example, $20 million) in the Deductible Building field. Otherwise, enter the individual deductible amounts in the Deductible Building (deductible 1), Deductible Other (deductible 2), Deductible Contents (deductible 3), and Deductible Time (deductible 4) fields.

With the introduction of the NGM financial engine in 2022, we introduced support for a site deductible placed on a location along with a minimum-maximum deductible on the location as the second-tier deductible.