What is a Rental Insurance Deductible and How Large of a Deductible Should I Get?
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In a nutshell, the deductible is the amount of covered loss which is classed as being your responsibility. This does vary state to state, but are generally in amounts such as $500, $1000 or even maybe $2000.
Realistically speaking, if you had a $500 deductible, then you would be responsible for paying the first $500 for any loss, so if you were due a claim for $1500, you would only be able to claim for $1000 – simple really.
For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.
How Large a Deductible Should I Get?
OK, here’s where it gets a little tricky and you need to play a bit of a balancing act, you see, the higher the deductible you are willing to take, the lower your premiums will be, but on the other hand, you have to pay much more out of your own pocket if there is any claim. Is it worth reducing your policy premiums by $50 or so but then having to pay out around $500 more in case of a claim (hypothetically speaking, check out the differences with your insurance broker)? It really is up to you!