How a Tenant Insurance Deductible Works
A deductible is the portion of an insured loss that remains with the policyholder before the insurer's payment is calculated, subject to the policy wording.
Deductible example
If covered damage is C$1,800 and the applicable deductible is C$1,000, the deductible consumes a large share of the loss. The actual settlement still depends on coverage, limits, valuation and policy terms.
This is why the deductible should be understood before a loss occurs rather than discovered only after a claim.
A small repair can be close to the deductible
Insurance Bureau of Canada notes that a policyholder may decide to pay for damage rather than file a claim when the repair cost is low relative to the deductible. Claims history and any claims-free discount can also be relevant considerations.
IBC — How to file a claim →What to check in your tenant policy
Do not assume every tenant policy or every coverage uses the same deductible.
Contents, water-related endorsements and other sections can have different terms.
Replacement cost and actual cash value can change the settlement calculation separately from the deductible.
A deductible does not replace a policy limit or sublimit; both can affect the result.
Deductible is not the same as a premium
The deductible is connected to a claim. The premium is the price of the insurance policy. A higher or lower deductible can be one policy-design choice, but Canada Rate Lab does not assume a universal premium effect because insurer pricing varies.
Read the deductible glossary definition →