What Does Deductible Mean In Renters Insurance?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   The deductible applies to a property loss.  Once the amount of loss is determined the deductible is applied.  For example if there was a fire in the kitchen and the damages reached $50,000.  The company would reimburse you for $49,000 if your deductible was $1,000.  If some of the loss was subject to limitations, this would then be applied and could further reduce the adjusted claim.  For example if your loss include $20,000 in firearms and your policy had a limit of $2,000, the settlement would be reduced an additional $18,000.  There isn’t a deductible applied to liability claims in most homeowner’s policies.

   Answered on March 17, 2014

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