If you experience a covered loss and need to make a claim on your insurance policy, you may be required to pay a deductible. The amount of the deductible will be shown on the Declaration page of your policy and will typically be subtracted from the total amount of your covered loss. For example, if you have a $1,000 deductible and a covered loss of $5,000, you would pay $1,000, and the insurer would cover the remaining $4,000. If your loss is less than the deductible, there would be no payout.
How Do Deductibles Apply to Claims?
Claim Submission: You do not need to pay the deductible upfront when submitting a claim. Instead, the deductible amount is subtracted from the approved claim payout. For example, if your covered loss is $932.82 and your deductible is $500, the net payout would be $432.82.
Loss Exceeding Deductible: A claim is only eligible for payout if the total loss exceeds the deductible amount. For instance, if your deductible is $1,000, the cost to repair the damage must be more than $1,000.
Policy-Specific Deductibles: Some policies may have specific deductible amounts for certain types of claims. For example, theft from a vehicle may have a minimum deductible of $1,000, regardless of the deductible selected for other losses.
However, some special coverages under the Tenant's package may not require a deductible. For example, certain coverages such as lock replacement, freezer food spoilage, and fire department charges may be exempt from the deductible requirement. Additionally, specific deductible amounts may apply to certain claims. For instance, theft from a vehicle typically has a minimum deductible of $1,000, while temporary accommodation expenses often have a deductible of $500. Damages to common property may also have a standard deductible of $500.
Customizing Your Deductible
Tenant insurance policies often allow you to choose from a range of deductible options, such as $500, $1,000, or $2,500. Here’s how your choice impacts your policy:
Lower Deductible: Results in higher premiums but reduces the amount you pay out of pocket when making a claim.
Higher Deductible: Lowers your premiums but increases your out-of-pocket costs for claims. To adjust your deductible, you can use the deductible selector on the quote page or contact an agent for assistance. Changes can also be made through the customer portal.
To ensure that you have a clear understanding of policy's deductible requirements and any applicable exemptions, we recommend reviewing policy documentation. The minimum deductible for tenant insurance is $500, and a $0 deductible option is not available. If you have questions, contact your insurance provider for clarification.
Frequently Asked Questions
Can the deductible be reduced to $0?
No, the minimum deductible is $500, and a $0 deductible option is not available.
Can the deductible be waived or subtracted from the coverage limit?
No, the deductible must be paid by the policyholder and is not removed from the coverage limit.
Is the deductible the same across all claim types?
Generally, the deductible is the same across loss types, except for specific cases like theft from a vehicle.
How does the deductible affect my premium?
Choosing a lower deductible increases your premium, while a higher deductible reduces it. Most customers select a $1,000 deductible as a balance between affordability and coverage.
Looking to learn more? Read our article A Guide to Filing Your APOLLO Tenant’s Insurance Claim