Renters Insurance Quote | Your Deductible and How It Works

BLOG_Searching for renters insurance heres what you need to know about your deductible

Renters Insurance Quote | Did you just find an amazing place to rent? That’s wonderful! As you shop for a renters insurance policy to protect all the belongings you will add to your new place, it’s important to keep in mind that there are some basic factors that will affect the premium you are quoted. These include, among other things, your deductible and your liability limits.  

For those new to the world of insurance, the deductible can be a foreign concept. Here we will explain what a deductible is and how it works, not only in your renters policy, but also in the event you should need to file a claim.

What is a deductible?

A deductible is the amount of out-of-pocket money that you will spend before your insurance coverage kicks in for a covered loss. When you file a claim, you are responsible for covering a set dollar amount towards the loss. Once you meet your deductible requirements, your renters insurance policy will take over and cover any additional costs up to the limits of your policy. In Florida, there are typically two deductibles: your All Other Perils deductible (the deductible you would pay in the event of a covered loss, not including hurricane), and your Hurricane deductible (the deductible you would pay in the event of a hurricane loss).  

How do deductibles affect cost?

You can adjust your insurance rate by adjusting your deductibles. The more you are willing to spend out of pocket, the lower your premium will be. While this may be a short term plan to save you money, for some it can prove difficult to come up with a large sum of money in a catastrophe if you should need to file a claim. Before you consider a higher deductible, consider your options in an emergency situation. Do you have savings that you can rely on to pay a higher deductible? Or would you be better off with a higher premium payment and lower financial obligation at the time of loss?

How do deductibles work?

Renters insurance deductibles are set dollar amounts. When you file a claim, the insurance company will investigate the claim to determine if it is covered under the terms of your policy. If it is a covered loss, they will assess the total amount of the loss based on the information provided. Once this is determined, your deductible will be taken off the top of the total amount. For example, if your deductible is $500 and your loss is determined to be valued at $2,000, you are responsible for paying $500 to recover your loss and the insurance company will issue you a check for $1,500.

Renters insurance can save you several thousands of dollars if you should ever be in a situation, such as a fire or theft, which results in a total or partial loss of your personal belongings. Many renters mistakenly think that the landlord’s homeowner insurance policies cover their items as well. This is not true. In the case of a rental property, homeowner insurance covers the dwelling but not the contents of the home.

Understanding what your landlord covers, your deductible and all parts of your renters insurance makes you less prone to surprise costs and devastating setbacks in the event of the need for a minor or major insurance claim. 

Receive a free, no obligation renters insurance quote today, and to learn more about renters insurance, contact your American Integrity Agent for more information. 

American Integrity Insurance is committed to providing Florida homeowners with sound, comprehensive insurance coverage and an extraordinary customer experience. We strive to be a valued partner to our policyholders, agents, and community. 

We offer traditional and high valued homeowners insurance, condo insurance, renters insurance, and the special coverage required for vacant homes, manufactured homes, and policies designed for those who need less coverage or are renting out their home. We also offer extra protection, including flood insurance, umbrella insurance, golf cart insurance, boat insurance, cyber coverage and identity theft protection as well as equipment breakdown coverage, to help address a broad range of needs facing Florida homeowners today. 

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