Property · Insurance Term
All Other Perils Deductible (AOP Deductible)
Definition
The all other perils (AOP) deductible is the standard deductible on a property policy that applies to every covered cause of loss without its own separate deductible, such as fire, theft, vandalism or water damage. It is usually a flat dollar amount.
In Plain English
Many commercial property policies have more than one deductible. Wind and hail often carry a separate wind and hail deductible, coastal properties may have a named storm deductible, and flood or earthquake coverage has its own. Everything else falls under the AOP deductible.
The AOP deductible is usually a fixed dollar amount, such as $5,000, $10,000 or $25,000 per occurrence. Wind and storm deductibles, by contrast, are often a percentage deductible of the building's insured value, which can be far larger.
Raising the AOP deductible can lower the premium, but you take on more of the small, frequent losses. Pick a level your cash flow can absorb a few times in one year.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a $3,000,000 building has a $10,000 AOP deductible and a 2% wind/hail deductible. A burst pipe causes $40,000 of damage; the owner pays the first $10,000. Hail causes $150,000 of damage; the wind/hail deductible is 2% of $3,000,000, or $60,000.
Why It Matters for Texas Property Owners
In Texas, the gap between the AOP deductible and the wind/hail deductible is often large, because many insurers use percentage deductibles for wind and hail. Owners should plan cash reserves around the wind/hail deductible, not just the AOP figure.
What to Watch For
- List every deductible on your policy and the causes of loss each one applies to.
- Check whether the deductible applies per building, per location or per occurrence.
- Make sure the AOP deductible fits your lender's maximum.
- Compare the premium savings of a higher deductible against how often you have small claims.
Common Questions
Does the AOP deductible apply to hail?
Usually not, if your policy has a separate wind/hail deductible. If there is no separate one, hail would fall under the AOP deductible. Check your declarations.
Can I have different AOP deductibles for different buildings?
Sometimes. Some policies set deductibles by location; others use one deductible across the schedule. Ask your agent what the markets will allow.
Last updated October 14, 2026 · Primesure editorial team · How We Write