Which type of property insurance deductible is calculated as a specific dollar amount?

The correct answer is the lump sum deductible, which is characterized by being a fixed dollar amount that the policyholder must pay out of pocket before the insurance coverage kicks in. This type of deductible is straightforward and provides clarity for both the insurer and the insured, as it specifies exactly how much the insured will need to contribute for each claim.

In contrast, a percentage deductible is calculated based on the value of the claim or the property insured, meaning the amount the insured pays varies depending on the circumstances. A straight deductible, while sometimes used interchangeably with the lump sum type, can also refer to a fixed amount applicable to each claim rather than specifically tied to the insured value. Aggregate deductibles, on the other hand, apply to the total amount of all claims within a policy term, requiring the insured to reach a specific threshold of out-of-pocket expenses before the insurer pays for subsequent claims. This complexity of other deductible types highlights why the lump sum deductible stands out as a simple, clear-cut option.