So if your loss is greater than the amount of that distribution or allocation, the remaining portion of the loss is treated as a short - term capital loss. (fairmark.com)
A deductible is a small portion of the loss that the policyholder must pay out of pocket before the insurance company pays. (pocketsense.com)
For example, you might want to claim only part of the loss against income that was taxed at a higher marginal rate and apply the remaining portion of the loss to another year. (taxplanningguide.ca)