Landlord insurance deductibles and coverage limits

Most landlord and hosts coverages include a deductible, and all coverages are subject to limits. If you need to file a claim, you’ll want to know what these terms mean and how they come into play.

When you have a covered loss, insurance for your property includes two key cost factors: your deductible and your coverage limits.

• Deductible
  This is the amount you pay out of pocket before insurance helps cover the rest. For example, if a fire causes $5,000 in damage and you have a $1,000 deductible, you pay $1,000 and your insurance pays the remaining $4,000. Not all coverages have a deductible, but dwelling and other structures coverages always do. Your deductible amount appears in your policy declarations, and you typically choose it from several options—higher deductibles usually mean lower premiums.
• Coverage limits
  A coverage limit is the maximum amount Allstate will pay for a covered loss. Each coverage in your policy has its own limit, and you select those limits when you purchase the policy. It’s important to choose limits that match the value of your rental property and your potential rental income. These limits are listed in your policy declarations, and your Allstate agent can help you adjust them based on your needs.