When you purchase renters insurance, you hope you’ll never have to use it. However, there may come a time when you need to file a claim, and you should know how to do so to get the most out of your policy. Renters insurance can help replace damaged or stolen belongings, pay medical and legal bills if someone is injured at your home, and cover the expense of being temporarily displaced.
Even the best renters insurance has limits and exclusions, though, which are important to understand if and when you submit a claim. We at the Guides Home Team have compiled this guide to the claims filing process to help walk you through the process.
Get rates from top providers in minutes
Get Quotes with our comparison partner, QuoteWizard
×
Compare Renters Insurance Policies
Answer a few simple questions and we’ll do the rest.
with our comparison partner, QuoteWizard
Common Renters Insurance Claims
Renters insurance can cover a wide range of situations, but some claims are more common than others. Below are a few examples:
- Theft: Not only does renters insurance cover items stolen from your home, but it typically also covers your personal belongings no matter where they are stolen. As long as the items belong to you and were in your possession, renters insurance can help you replace them. This includes luggage stolen from your hotel room, theft of a locked bicycle and items stolen from your vehicle.
- Vandalism: Renters insurance generally covers belongings that are damaged or destroyed as the result of vandalism. Vandalism may occur in combination with or independent of a theft. For example, a thief might break a window, allowing rain to damage items inside your home. Your policy would cover the damaged items.
- Fire: Whether your belongings are destroyed by a kitchen fire or a wildfire, renters insurance will help replace them. Your belongings could also suffer smoke damage, even if the fire never touches them. Note that structural damage will fall under your landlord’s insurance policy.
- Bodily injury: Suppose a friend trips at your rental home and breaks their arm. Your renters insurance will help pay for their medical bills and, if necessary, your legal expenses. The two most common types of bodily injury covered by renters insurance are slip-and-fall accidents and dog bites.
- Water damage: Renters insurance will cover certain types of water damage, such as burst pipes or leaky plumbing. If you live in an apartment, your belongings could even be damaged by a neighbor’s unaddressed plumbing issue. What renters insurance may not cover is flooding that occurs due to a natural disaster. For that, you may need to purchase a separate flood insurance or a policy add-on.
- Displacement: In some cases, a covered event may cause so much property damage that your home is no longer safe to live in. For instance, a fire could render your home uninhabitable. In that case, your renters insurance will help cover extra living expenses during your temporary displacement, such as a hotel stay, takeout and laundry services.
Although the above list is not comprehensive, it should give you an idea of what renters insurance covers and what some of the most common claims are. To find out what claims your policy will and will not cover, refer to your policy documents or speak to your insurance agent.
When To File a Claim
Filing a renters insurance claim is not always worth it. Before filing a claim, consider these three factors:
- Potential payout: Estimate how much it will cost to repair or replace your belongings, then compare that figure to your deductible. Remember that the insurance company will subtract your deductible from your reimbursem*nt. If the claim is not worth more than your deductible, you will not receive a payout.
- Claims history: One thing insurance companies consider when calculating your premiums is how many claims you have filed in the past. If this will be your first time filing a claim, you can expect your rates to rise but your coverage to continue. However, if you have already filed multiple claims within the last five years, you run the risk of your insurer dropping you.
- Cause of loss: Read through your renters insurance policy carefully to determine whether it actually covers the cause of your property loss. If you are still not sure, ask your insurance agent. Clarify that you simply have a question about what your policy covers so that they do not prematurely interpret your call as an attempt to file a claim.
You should also put some thought into how effectively you can document your loss. For property claims, the insurance company will ask for proof of ownership and proof of loss. If you are unable to provide evidence of those two things, the insurer may deny your claim or pay less than your claim is actually worth.
How To File a Claim
Policyholders should follow the below steps to file a renters insurance claim.
1. File a Police Report, If Necessary
If you are filing a claim due to theft or vandalism, your first step should be reporting the crime to the police. You may also need to alert the authorities if your property loss was caused by an unexplained fire. Keep a copy of any police reports.
You should also contact your landlord. Regardless of whether the damage stems from a plumbing issue, a natural disaster or a crime, your landlord needs to know. In some cases, your landlord may also need to file a claim with their insurance company.
2. Make a Record of Lost or Damaged Items
Once any associated crimes have been reported, document the incident. In the case of property loss, that means making a list of lost or damaged items. Take photos or a video of any visible damage to your belongings. You should also document the cause and take steps to prevent ongoing damage, if necessary.
Ideally, your list should include the value of each item. Receipts or a bank statement could provide proof of how much you paid. This information will be important later as the insurance company considers how much to pay out.
Keep any receipts for expenses related to your claim. If you need to make temporary repairs or stay at a hotel overnight while repairs are made, save the receipts so that you can submit them to the insurance company later.
3. Call Your Insurance Provider
Your next call should be to your insurance provider. Some companies provide other ways to get in touch, though. Depending on the company, you may be able to reach out via live chat or an app.
Regardless, the insurance company can explain how to file a claim. Again, the process may differ slightly from one company to another. Many insurers offer a convenient online claims form, which can be faster and easier than filling out a paper form.
4. Fill Out Paperwork Provided by Your Agent
As you fill out the claims form, you will need the following pieces of information:
- Your policy number
- Details about the lost or damaged items, such as the model numbers
- The estimated value or cost to replace the items
Be prepared to submit evidence that backs up your claims. The insurance company will want to see proof of ownership and proof of loss. The more thorough your documentation, the smoother the claims process will be.
5. Track Your Claim and Respond to Requests
Once the insurance company receives your claim, it will assign an insurance adjuster to your case. The adjuster will review the details of your claim and may ask follow-up questions or request additional documentation. In some cases, they may need to assess the damage in person.
Throughout this process, watch for communication from your insurance company. Respond to any requests as quickly as possible to avoid delaying your payout. Some companies make it possible to track your claim online. Otherwise, you can email or call periodically to ask for updates.
6. Receive Payment
Finally, the insurance company will decide whether to approve or deny your claim based on the adjuster’s findings. You may receive your payment via check, or the insurance company may deposit the amount into your bank account. Keep in mind that your payout will be reduced by the amount of your deductible. If your claim was worth $1,000 and you have a $250 deductible, you will receive $750.
In some cases, such as claims that involve liability coverage, the payment may be made directly to a third party.
Will Insurance Premiums Increase After Filing a Claim?
In most cases, yes, your insurance premiums will increase after filing a renters claim.
As it recalculates your premiums in the wake of a claim, your insurance company will generally consider the type, amount and frequency of claims. The more often you file claims, the riskier you are to insure. Thus, your rates will go up less after your first claim than they will after a second or third claim. The increase may also be more dramatic if you filed a large claim as opposed to a relatively minor one.
The good news is that the premiums for renters insurance are already so affordable that most increases will only amount to a few dollars per month. As a result, filing a renters insurance claim will have less effect on your budget than filing a homeowners insurance or auto insurance claim.
If your rates increase more than you would like, gather new renters insurance quotes to ensure that you have the cheapest renters insurance.
When Will I Get Reimbursed?
Some states set deadlines that require insurance companies to process your claim within a certain time period. However, you aren’t likely to find a law that dictates the timing of reimbursem*nt. Your insurance company may issue payment within a few days for simple claims, or it could take weeks. The timing ultimately depends on the type of claim, how quickly you file and respond to requests, and the policies of your insurance provider.
Depending on your policy and the type of claim, you may get reimbursed in phases. For instance, your insurance company will likely send an initial check that covers the actual cash value (ACV) of your belongings. However, that may not be the full or final payment.
The value of renters insurance increases if your policy includes replacement cost coverage. With a policy that covers the replacement cost value (RCV), you may not receive the full amount until you actually replace the items and submit the receipt. The insurance company will then send you a second payment to cover the difference between the ACV and the RCV.
For personal liability claims, the insurer will pay the injured parties and your attorney directly rather than requiring you to cover the cost up-front. The cost of your defense may not even count against your coverage limit.
The Bottom Line
Renters insurance is a low-cost investment that covers personal property, liability and loss of use. Remember that not all situations warrant a renters insurance claim, even if your policy would cover the loss. Before filing your claim, consider whether the payout will be worth the hassle and likely premium increase.
When you are ready to file, simply follow the steps above, including filing a police report if necessary, notifying your landlord of the event, documenting your loss and gathering receipts, calling your insurer, filling out claims paperwork, and responding to additional information requests. A thorough understanding of your role in the claims process and a careful review of your policy documents should help expedite things.
Frequently Asked Questions About Renters Insurance Claims
You can maximize your renters insurance claim by following a few simple steps. Note that most of these actions must be taken in advance of filing a claim. By the time you need to file a claim, your options will be limited.
- Purchase additional coverage for your most expensive items.
- Find a policy that pays the full replacement value rather than the actual cash value.
- Create a home inventory, complete with videos or pictures of high-value items.
- Save copies of your receipts for big purchases.
- Take advantage of discounts that will lower your premiums.
- Choose a lower deductible.
- Keep a record of all communication with your renters insurance company.
- Photograph and set aside damaged items.
- Do what you can to prevent the damage from getting worse.
When you file a renters insurance claim, you should be ready to provide two things: proof of ownership and proof of loss. Although receipts may be the easiest way to prove ownership, they are not the only way. You can also use a bank statement, photograph, video, home inventory, user manuals or other records. If you don’t have receipts and cannot provide other evidence, the insurance company may deny your claim or offer an inadequate settlement.
Renters insurance typically does not cover losing something. Misplacing or losing an item is unlikely to be included in the list of events covered by your policy. However, you may be able to add an insurance rider that covers accidental loss for specific, named items. If you are interested in this option, ask your insurance agent about scheduled personal property coverage.
The deductible in renters insurance is the monetary amount you are responsible for paying before your insurance kicks in. In other words, the insurance company will deduct that amount from your payout. As an example, imagine you have a $250 deductible and file a claim for a $1,000 laptop stolen from your apartment. Once your claim is approved, the insurance company will send you a check for $750 — the claim amount minus your deductible.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
