{
  "slug": "insurance-deductible-choice-rental",
  "title": "Landlord Insurance Deductible Choice Calculator",
  "heading": "Landlord Insurance Deductible Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/insurance-deductible-choice-rental",
  "summary": "Compare premium savings from a higher deductible against your realistic claim risk.",
  "description": "Raising your landlord insurance deductible from $1,000 to $2,500 or $5,000 lowers your annual premium, but it also raises what you pay out of pocket on every claim you file. This calculator compares the premium savings over a chosen time horizon against the extra out-of-pocket cost you'd absorb if you file a typical number of claims, so you can see the breakeven number of claims where the higher deductible stops paying off. Landlords with multiple properties often carry higher deductibles deliberately, self-insuring small losses and reserving insurance for the catastrophic ones, since filing small claims also raises future premiums and can trigger non-renewal.",
  "formula": "Breakeven claims = premium savings over period ÷ (higher deductible − lower deductible). Net savings = premium savings − (extra deductible × expected claims).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=insurance-deductible-choice-rental",
  "inputs": [
    {
      "id": "lowDeductible",
      "label": "Lower deductible option",
      "kind": "number",
      "hint": null,
      "default": 1000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "lowPremium",
      "label": "Annual premium at lower deductible",
      "kind": "number",
      "hint": null,
      "default": 1450,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "highDeductible",
      "label": "Higher deductible option",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "highPremium",
      "label": "Annual premium at higher deductible",
      "kind": "number",
      "hint": null,
      "default": 1120,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "expectedClaims",
      "label": "Expected claims over 10 years",
      "kind": "number",
      "hint": null,
      "default": 1,
      "unit": null,
      "min": 0,
      "max": 10
    },
    {
      "id": "years",
      "label": "Time horizon",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": "years",
      "min": 1,
      "max": 30
    }
  ],
  "outputs": [
    {
      "id": "netSavings",
      "label": "Net savings choosing higher deductible",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "totalPremiumSavings",
      "label": "Total premium savings over horizon",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakevenClaims",
      "label": "Breakeven number of claims",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "premiumSavingsAnnual",
      "label": "Annual premium savings",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "expectedExtraCost",
      "label": "Expected extra out-of-pocket cost",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Lower deductible option: 1000 $",
      "Annual premium at lower deductible: 1450 $",
      "Higher deductible option: 5000 $",
      "Annual premium at higher deductible: 1120 $",
      "Expected claims over 10 years: 1",
      "Time horizon: 10 years"
    ],
    "outputs": [
      "Net savings choosing higher deductible: -$700",
      "Total premium savings over horizon: $3,300",
      "Breakeven number of claims: 0.83",
      "Annual premium savings: $330",
      "Expected extra out-of-pocket cost: $4,000"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter lower deductible option ($).",
      "Enter annual premium at lower deductible ($).",
      "Enter higher deductible option ($).",
      "Enter annual premium at higher deductible ($).",
      "Enter expected claims over 10 years.",
      "Enter time horizon (years).",
      "Read your net savings choosing higher deductible on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "lowDeductible": 500,
        "lowPremium": 875,
        "highDeductible": 3000,
        "highPremium": 675,
        "expectedClaims": 0.6,
        "years": 6
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "lowDeductible": 1000,
        "lowPremium": 1450,
        "highDeductible": 5000,
        "highPremium": 1125,
        "expectedClaims": 1,
        "years": 10
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "lowDeductible": 1500,
        "lowPremium": 2325,
        "highDeductible": 8000,
        "highPremium": 1800,
        "expectedClaims": 1.6,
        "years": 16
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How many claims does the average landlord file?",
      "a": "Most landlords with well-maintained properties file a claim far less than once every ten years for anything beyond routine maintenance, since small damage typically costs less than the deductible to bother filing. High-risk areas for wind, hail, or water damage see materially more frequent claims, which changes this math a lot."
    },
    {
      "q": "Does filing a claim raise my premium regardless of the deductible?",
      "a": "Often yes — many insurers apply a claims-frequency surcharge or non-renew policies after two or more claims within a few years, independent of the deductible level. This is a strong argument for a higher deductible: it discourages filing small claims that hurt your insurability more than they help your wallet."
    },
    {
      "q": "Should every property in a portfolio use the same deductible?",
      "a": "Not necessarily — properties in high-risk zones (coastal wind, wildfire-adjacent, older roofs) may warrant a lower deductible or specialized coverage, while stable, newer, low-risk properties can carry a higher deductible without much added risk. Match the deductible to each property's actual loss profile."
    },
    {
      "q": "What's a typical hurricane or wind deductible?",
      "a": "In coastal states, wind/hurricane deductibles are often percentage-based rather than flat dollar amounts — commonly 1-5% of the dwelling's insured value — which can mean $5,000-$25,000+ out of pocket on a single claim, a very different risk profile than a flat $1,000-$5,000 deductible on standard perils."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/property-tax-appeal-roi",
    "https://www.revenuelab.fyi/toolbox/capex-reserve-per-door"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Landlord Insurance Deductible Choice Calculator (https://www.revenuelab.fyi/toolbox/insurance-deductible-choice-rental)"
}