What occurs if the total damage is less than the deductible for a franchise plan?

In a franchise plan, if the total damage falls below the deductible threshold, the claim payment is typically denied. This means that the insured bears the loss entirely since the deductible represents the amount that the policyholder needs to pay out of pocket before the insurance coverage kicks in. In this case, if damages do not meet or exceed the deductible amount, there won't be any reimbursement from the insurer, as the insured does not qualify for a claim payment.

This understanding is crucial when managing expectations about insurance claims and financial responsibility in the event of a loss. The deductible serves as a significant factor in determining the insurer's obligation to cover damages, and when losses are lower than this predetermined threshold, the policyholder is responsible for covering those costs entirely.