A renters insurance deductible is the amount you pay toward a covered property claim before your insurance pays the rest. With a $500 deductible and a $3,000 covered loss, you pay $500 and your insurer pays $2,500.
How the deductible works
The deductible is subtracted from each covered property claim. If the loss is smaller than your deductible, the insurer pays nothing, which is why small losses often aren’t worth claiming.
| Covered loss | $500 deductible | $1,000 deductible |
|---|---|---|
| $400 bike stolen | You pay $400; insurer pays $0 | You pay $400; insurer pays $0 |
| $2,000 laptop and TV stolen | Insurer pays $1,500 | Insurer pays $1,000 |
| $20,000 fire loss | Insurer pays $19,500 | Insurer pays $19,000 |
What the deductible usually applies to
- Applies: personal property claims such as theft, fire and water damage.
- Usually doesn’t apply: liability claims, medical payments to others and, in many policies, loss-of-use (additional living expense) payments.
Some policies have a separate, higher deductible for certain events, such as a hurricane or windstorm deductible in coastal states, or a percentage deductible on earthquake coverage.
Common deductible amounts
$250, $500 and $1,000 are typical choices. A higher deductible lowers your premium; a lower one raises it.
How to choose
Pick the highest deductible you could pay tomorrow without stress. If a $1,000 surprise would be hard, a $500 deductible may be worth the slightly higher premium. How deductibles affect price.
More terms explained: the renters insurance glossary.
New to this? Start with What is renters insurance?
This site offers general information, not insurance or legal advice. Coverage, prices and rules vary by insurer, policy and state, so always read your own policy and ask your insurer or agent about your situation.