What does annual aggregate deductible mean?

annual aggregate deductible meaning in Insurance Dictionary

(1) A deductible-type program under that the insured agrees to reimburse u000du000au0009its insurer for the own losings during the plan 12 months to the agreed upon u000du000au0009annual aggregate amount. When the insured has compensated losings to that quantity, u000du000au0009the insurer pays the remainder of losses the annual period without u000du000au0009looking for reimbursement from the insured. (2) The amount through which a loss or relevant u000du000au0009coverage limitation is low in order to determine the level of the guaranteed's u000du000au0009data recovery. In standard residential property insurance coverage rehearse, the allowable quantity is u000du000au0009subtracted from the amount of the adjusted loss; the insurer pays this reduced u000du000au0009amount, plus the guaranteed is in charge of the deductible quantity. See also u000du000au0009Deductible.