How do claims for Renter's Insurance get paid out?

Question

I'm in MA, looking to get 50k in coverage for my apartment, where I have well up to 50k in stuff. Should I take inventory of everything now in case of some damage later? Like what if my house burns down, do they just send me a check for 50k? I just want to make sure Im covered. Also, since we're renters I want my car to be covered for things like vandalism, theft or trees falling, etc, and I know car insurance wont cover them, homeowners is supposed to, but we rent. Ive looked around and cant seem to find this info and my agent blows me off-tells me not to worry...

Answer 1

Yes, you should take an inventory.  Come loss time, you have to give them a list of what was damaged - they won't just flat out write the check.  

Homeowners doesn't cover your car.  Or renter's, either.  Flat out, cars are excluded.  For things like vandalism, theft, falling trees, you need to add Comprehensive coverage to your auto policy.  MA has a seperate glass deductible, for broken glass.  Make sure you think about that when you're adding the coverage to your auto policy.

Best way to do the inventory, is to take a camcorder all around the house.  It should take you 15 minutes or less.  Be sure to get the serial numbers of any big ticket electronics.  Then you give the tape/disk to a friend to keep, in case your place burns to the ground.

I have a former employer (or two) in MA.  So if you want a new agent, email me, and I'll give you the contact info.  Your current agent sounds like they either don't know their business, or don't care about your concerns.

Answer 2

Well first off your insurance company wont just write you a check for $50,000. They will want proof of what is loss. And when you get your policy look under exclusions on the policy what is not covered. Get comprehensive to cover you the most. Things like jewelry they will only cover up to $3000 for the companies i have seen so if you  have a ring or something of any sort that is collector or etc, you might want to get a seperate policy wrote up for them. Like a ringthe policy would go with your Renters Comprehensive policy as a floater policy. Your ring or items will need to be appraised by a licenced appraiser. That will secure that if it was stole or burnt you would get the fullvalue for that item. For the others Comprehensive Renters should be all you need. Just ask your insurance provider what exclusions there are, those will deteremine what you may want to get another policy over and above. It will all work out, phone a local insurance broker not a agent. Brokers like me work for the client not for the insurance company. So we work for you not them.

Answer 3

If you have a covered loss on your tenants policy (fire, theft, etc), you will need to prove to the company what you had.  They will not just "send you a check" for the policy limit, this is just the maximum they will pay, it is not guaranteed.  If you work at McDonalds they will have a hard time believing you had $50,000 worth of stuff in your apartment, or that you have that Armani suit.  Best thing for you to do is document everything - easiest way is to take a video, for all of your furniture, electronics, everything in all your closets, drawers, etc.  Speak the whole time, say approx date of purchase, approximate cost (keep receipts for the big stuff), serial #s, if the furniture is a higher end name brand, say that too, etc.  Then, keep a copy off premises (safe deposit box, with your insurance agent, etc).  Update it when you purchase new items (not every time you buy new socks, but you get the idea).  If there is a loss, this will make the process go much quicker because you may not even remember all the stuff you really had!  Purchase replacement cost on your contents.  But, you would only collect replacement cost if you actually replace the item, you will only get actual cash value until then.

Now, a vehicle is NEVER covered on a homeowners or renters policy.  It is ONLY covered under an auto policy.  If you want coverage for theft, vandalism, trees falling, you need to purchase comprehensive (other than collision) coverage on your auto policy.

If your agent blows you off, get another agent.

Answer 4

I am not sure about the car part but that might be an extra. I know if you store things in your basement and want that coverd from flood or sewage thats an extra. As for inventory it depends on you insurance company. Some wont need it unless its over a certain amount. some will try to send a agent to your house. some you just need a list. My house had a surge of electric that fried my electronics. No one had to come to my house and all I had to do is make a list of what was ruined and how old it was and how much to replace. Then they sent me a check minus my deductable.

I am with Acuity and I am happy with them. They cover my renters and my auto.

Answer 5

A couple of points, if I may:

(1) Replacement cost endorsement.  A worthwhile addition.  Typically renters policies cover on an ACV (depreciated value) basis.  The RPL endorsement will provide for payment of full replacement cost if the item is actually replaced.  Usually about 5% of the total premium.

(2) Your friend may not have lied.  If there was personal property inside of the auto it likely would be excluded (or severely limited) under the auto policy.  HO or renters would likely pick it up.

(3) Broker vs. Agent.  Interesting use of terminology by that answerer.  An independent agent works for a lot of companies (Safeco, Allied, Hartford, etc.) whereas some companies have dedicated agents (State Farm, Nationwide, etc.)  There are very good agents of all forms.  Direct is also an option these days, but personally I prefer a good local agent that can assist you more directly.