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What is a deductible on renters insurance?
I’m looking at renters policies, but I need help understanding how it all works. What is a deductible on renters insurance?
Bonnie Stinson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Great question! A deductible is the amount the policyholder must pay out-of-pocket before the insurance kicks in to cover costs in a covered incident.
Here’s a quick example that explains when, why, and how a deductible works.
Let’s say you have a renters insurance policy with a $500 deductible. One day, a windstorm breaks your window and causes water damage to your $600 digital tablet. Windstorms and water damage are covered by your renters insurance so you decide to file a claim.
In this example, you would only receive a payment of $100. That’s because you are responsible for the out-of-pocket deductible, which is $500.
Your reimbursement = item’s value minus your deductible (subject to your policy’s total limit)
Is it even worth having renters insurance, then? Yes, it is! When you’re building a renters policy for yourself, you get to choose the amount of your deductible and your policy limit.
You can choose a lower deductible which means you don’t have to pay as much out-of-pocket if something happens. However, your higher monthly payment will be higher.
Most people choose to file claims for major incidents where the cost of the damage far exceeds their deductible. For instance, you would definitely file a claim if the windstorm broke your window and destroyed all your furniture and personal electronics. However, if the cost of the damage is similar to your deductible, it may not be worth filing a claim.
Only you can decide what type of policy works for your needs.
If you have any questions about
renters insurance
or even car insurance
, reach out to Jerry
. Our friendly agents are just a text or phone call away! The Jerry app is the fastest way to find a cheap policy, too. You can compare rates and sign up for a policy in seconds. Hope this helps!
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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