Diminishing Deductible for Renters Insurance
As a renter, you may not be in control of the color on your walls and the flooring in your kitchen — but you can be in control of your deductible! How? Because we’re offering Diminishing Deductible as a new policy feature you can purchase to help with surprise expenses. With this coverage, we’ll credit (lower) your deductible, up to $500, to help you better prepare for the out-of-pocket costs when you have a claim. It’s one of the ways we give you control over what you pay!
So how does it work? It’s easy:
While your renters insurance will be there to step in and cover the unexpected, such as the theft of your prized possessions, you’ll probably have a deductible to pay first, which can often be a financial setback in itself.
Our Diminishing Deductible rewards you for being a responsible renter by crediting your deductible $100* each year, up to a maximum of $500.
Let’s take a closer look so you know exactly how you can benefit from our renters insurance with Diminishing Deductible.
How Does Diminishing Deductible Work on Renters Insurance?
We’ll start with the basics. When purchasing renters insurance, you’ll select a deductible. A deductible is a set amount of money you’ll pay out of pocket before your insurance kicks in to cover replacement costs if you file a claim. In this example, we’ll use $500.
At American Family, we know that a deductible isn’t always the easiest thing to pay after the unexpected. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your deductible amount that you owe before your insurance coverage takes care of the rest.
Here’s how it happens:
Earn Credit Immediately: We’ll credit your deductible $100* from day one. Let’s say you have a $500 deductible. Good news — it just dropped to $400.
Watch Your Deductible Diminish: Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum deductible amount of $500, as long as you maintain your policy with us.
Savings When You Need It: If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets on the first day of the renewal following the paid claim, so you’ll go right back to earning a reduced deductible amount.
What Diminishing Deductible Covers: Diminishing Deductible applies to the deductible you pay when your personal property is stolen, for example, or damaged in a covered peril such as a fire. Speak to an agent to find out more.
What happens if you file a claim and have to pay a deductible?
That amount you’ve been earning the last few years will be subtracted from the deductible amount you owe.
Let’s put it into perspective: your apartment or condo was burglarized, and your electronics were stolen. The cost to replace your valuables is $2,000, but before your insurance kicks in to cover the cost, you have to pay your $500 renters deductible. You were planning on saving for a new car this year and aren’t happy about handing over a $500 deductible before your insurance pays to cover the damage — and thankfully, now you don’t have to.
Since this is the first renters insurance claim you’ve filed in three years, you’ve earned a $300 Diminishing Deductible amount and knocked your deductible amount to $200. Now you’ll only have to pay $200 before your insurance kicks in to cover the remaining $1,800.
So, what’s the catch?
There isn’t one! We want to help you be more comfortable and prepared with the out-of-pocket costs that come with filing a renters insurance claim. This new coverage is a way to mitigate the financial hits that can come with the unexpected.
Once you’ve paid to add this coverage to your renters policy, you’ll continue to earn a lower deductible each year up to your policy maximum.
If it’s five years down the road and you still haven’t filed a claim, that reward will stay put until you need to use it. Just make sure you don’t let your policy lapse for 60 days or more, cancel your policy or remove this coverage from your policy since you won’t be able to get the accumulated amount back.
Is a Renters Insurance Diminishing Deductible Worth the Cost?
- When you have a claim, you’ll pay less out of pocket thanks to your Diminishing Deductible.
- Your deductible will continue to reduce each year at policy renewal, up to your policy maximum.
- You'll begin earning a lower deductible immediately.
Prepare Your Finances for the Unexpected With Diminishing Deductible for Renters Insurance
When you insure your apartment or condo with American Family, you don’t just gain a piece of paper with your policy — you gain extra protection and peace of mind. Our Diminishing Deductible is designed to ease some of the stress that comes with the claims process — specifically out-of-pocket expenses. Connect with your American Family Insurance agent to find out more about our renters insurance Diminishing Deductible and how its immediate earning benefits can help you financially protect what matters most.
Diminishing Deductible does not apply to all deductibles under your policy.
Some coverages may not be available in your state. Available at renewal for existing policyholders. Please speak with your agent to learn more about your coverage options.
* Maximum limit of $1,000 for homeowners insurance. Maximum limit of $500 for renter insurance, condo insurance and manufactured home insurance.