In the case of separate limits and a single occurrence damages multiple items, how is the deductible applied?

In situations where there are separate limits for each insured item involved in a single occurrence of damage, the deductible is typically applied only once per occurrence. This means that regardless of the number of damaged items resulting from that single event, the insured party only needs to pay the deductible amount once. The logic behind this approach is to simplify the claims process and ensure that policyholders do not face excessive out-of-pocket costs when multiple items are affected by the same incident.

In the context of insurance, each item may have its own separate limit for coverage, but the occurrence itself triggers the deductible just a single time. Therefore, when calculating the total amount for the claim, the deductible is deducted from the total coverage available for all affected items, rather than applying it to each item individually.

This understanding acknowledges that the purpose of the deductible is to encourage loss prevention and responsible ownership, rather than to penalize the policyholder for the number of items affected by a singular event.