Contents Claim: Do you Know what You Own?
It’s common to think that the landlord’s insurance policy also ensures its tenant. But unfortunately, that isn’t the case. The landlord’s insurance protects the building and its personal liability risk. Their insurance will not protect your belongings or your liability. When asked to describe renters insurance to new tenants, a broker will generally say, “It’s a policy designed to protect your stuff and liability risk”.
Our personal belongings might cost tens of thousands of dollars to replace. If the building is damaged by fire, it could all be gone instantly. The dilemma arises when your adjuster asks you to provide a list of lost or damaged items when filing a claim.
It’s unrealistic for us to remember every single item we own, but in case of a claim, that’s what we have to do. If a fire or someone breaks in, your insurance company will ask you to list everything you’ve lost. Claims are stressful enough without remembering every t-shirt, pair of shoes, DVD, and cooking utensil. But there are a couple of ways you could make things a little easier for yourself.
There’s no better time to do this than when you first move in! All your stuff is in boxes, organized (sort of) and easy to identify. Take a picture of your closet or a video of you walking through each room. If you have a claim, you’ll be able to look back and see a general snapshot of what you owned. For special items that can’t easily be replaced, ensure you have a record of it for the adjuster. Things that can’t be replaced will be settled for cash value. However, you may not get fair compensation without knowing the item’s specifics. Pictures or receipts of purchases are great ways to keep track of what you own. Another option is to record it physically; click here to see our downloadable checklist.
Track New Purchases
We don’t mean every time you buy a new bottle of shampoo or six-pack of socks. But if you purchase a new TV, mattress, or golf clubs, keep the receipts. Significant purchases should have a record; that way, if you experience a break-in and someone takes all your cool new things, you’ll have a history of what brand, make, and model you purchased!
Insurance providers do not know what you own; if you can’t remember, it can be much harder to replace. They can assume a reasonable amount, like clothing and furniture you probably owned to a certain degree. But if you’re the girl with over 200 pairs of shoes, you will have a hard time convincing your adjuster without some proof.
By taking these extra steps, you make things easier on yourself and stand a better chance of truly getting your life back to how it was before the loss occurred. Want to learn more about the coverages included in Renters Insurance?
Because tenant insurance coverage doesn’t cover the cost of rebuilding the apartment or house you’re living in (the landlord’s policy does that), the price of a tenant policy is often much more affordable than one might think. Getting a policy to protect yourself might cost less than you think as long as you remember that what you’re saving is much more than you realize.
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