Does Renters Insurance Have A Deductible?
Renters Insurance is the most understated and least utilized insurance coverage available in the marketplace. Most consumers don’t even know that it is the most affordable insurance coverage available.
For Renters on a tight budget, it would be hard to understand why the savings an approximate $10 monthly premium could cause such turmoil; clearly, the cost and benefits are not well researched. Even in States where Renters Insurance is an obligatory condition on Lease Contracts, many consumers simply follow the requirement without investigate the benefits and cost options.
As with other Personal Lines Property products, the renters insurance policy covers personal property as well as personal liability. The policy deductible applies to all property losses; however, liability claims do not have an applicable deductible. There is no deductible on Section II of your Renters Insurance Policy; Section II applies to Personal Liability and Medical Payments to Others, both of which do not require a deductible. If you are purchasing Renters Insurance primarily to provide Personal Liability coverage required by your landlord or simply for the personal protection of your assets from a liability exposure, you will be best served by purchasing a policy with the maximum available deductible.
The deductible was designed as a mechanism to reduce the number of claims by eliminating smaller inconsequential claims; by reducing the number of claims, the carrier experiences a lower loss ratio thus passing on the savings to the customer base with lower premium rates. For larger Commercial Risks, the deductible is sometimes referred to as Self Insured Retention (SIR); a deductible is simply the small portion of risk that the consumer is willing to absorb in the event of a claim. It would be wise to calculate the premium savings over a number of years and request the highest affordable deductible since it would be highly unlikely to suffer a claim each and every year.
A low renters insurance premium can be offered by requesting the greatest available deductible; however, the deductible is only applicable to Personal Contents (physical loss). It is important to review your policy as there are variations from State to State; however, Renters Insurance is referred to as a Homeowners Form HO-4 or Renters Form. Stillwater Insurance offers the lowest renters insurance premium with an available online consumer portal. You may obtain a Free Renters Insurance Quote and Buy your Renters Insurance Policy Online.
Stillwater Insurance, formerly Fidelity National Insurance Group, is an admitted carrier, authorized and licensed in all 50 States and rated A- Excellent by A.M. Best.