What must an owner pay before receiving compensation from their insurance policy?

The correct answer is the deductible. Before an owner can receive compensation from their insurance policy, they must pay the deductible amount. The deductible is the specific sum that the policyholder agrees to pay out of pocket before the insurance coverage kicks in. This structure ensures that the owner shares some of the financial responsibility for a loss, which can help keep insurance premiums more affordable over time.

In the context of insurance, the premium is the amount paid to maintain the policy itself and does not pertain to the claims process. A fee typically refers to a charge or cost associated with a service, which is not applicable here. Lastly, a claim is the request made to the insurance company for compensation after a loss has occurred, but a claim can only be processed after the deductible is paid. Thus, paying the deductible is a prerequisite for collecting any compensation from an insurance claim.