renters insurance deductibles and limits

Most renters insurance coverages include a deductible, and all coverages are subject to limits. It's important to know what those terms mean and how they come into play if you need to file a claim.

When you file a renters insurance claim you may be responsible for paying your deductible, which is your share of a covered claim.

For example, suppose a candle falls in the living room and starts a fire. It will cost $5,000 to replace the damaged furniture and drapes. If you have a $500 deductible, you will have to pay that amount and your insurance will pay the remaining $4,500.

Not all coverages have a deductible. However, a deductible will always apply to personal property coverage. The amount of any deductible will be shown on your policy declarations next to the coverage. In most cases, you choose the deductible from a range of options. A higher deductible usually means a lower insurance premium.

Every type of renters insurance coverage comes with a limit, which is the maximum your policy would reimburse you after a covered claim.

Some categories of personal property coverage have a maximum dollar limit that Allstate will pay a policyholder in case of damage or loss. Within these categories, there may also be a limit per single item.

You can increase your limits. For example, if you have valuable belongings, it may be a good idea to increase your protection.

If you've already added increased protection for your personal property, it will be listed on your Allstate^® Policy Declarations under Coverage and Applicable Deductibles or under the Scheduled Personal Property section.

Questions? Want to make changes to your coverage? Call your Allstate agent or 1-800-ALLSTATE.

The value of most of your belongings decreases over time. With Allstate renters insurance, you are able to choose one of the personal property coverages below.

Actual cash value typically means your belongings are covered for their replacement cost minus depreciation. Depreciation is the decrease in an item's value due to its age, condition or other factors. If you have actual cash value coverage, the reimbursement you receive after a covered claim may not be enough to replace your damaged items with brand new ones.

Reimbursement provision typically means your belongings are covered for the amount it would take to replace them at the time of the claim. Premiums are usually higher for this coverage.

Here's how the reimbursement provision works:

• First, we pay you for the actual cash value of the item.
• When you replace the item, we issue a separate check for the remaining amount needed to make the purchase.

If you have Allstate renters insurance, you can review which type of coverage you have purchased by looking at your policy declarations under Personal Property. With either coverage, a deductible will apply.