Under DCPD, when is a deductible applicable?

The correct answer emphasizes that a deductible under DCPD (Direct Compensation for Property Damage) does not automatically apply. Instead, it is contingent upon the specific terms outlined in the insurance policy. Typically, the insurance policy will indicate whether a deductible will be applied and under what circumstances, meaning that policyholders may have a deductible in some situations but not in others unless explicitly stated.

This approach reflects the principle that deductibles can vary significantly based on individual coverage options, and lack of a specified deductible would mean no out-of-pocket expense for the insured at the time of a claim. Thus, understanding the specific provisions of one's policy is crucial to determine if a deductible is applicable. This principle is essential for ensuring clarity in how claims are handled under DCPD coverage and protecting the interests of policyholders.