It's the amount you pay out of pocket on a claim before your insurance covers the remaining costs.

A deductible is the amount you must pay out-of-pocket before your renters insurance covers a claim. For example, if your deductible is $500 and your covered loss is $2,000, the insurer will pay $1,500.

If your renters insurance deductible is $500 and your stolen TV is worth $1,500, you would receive $1,000 from the insurance claim.

Choose a deductible that balances affordability with your ability to pay out-of-pocket in the event of a claim.