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Has anybody had a claim through his renter's insurance? They don't tell you much on their websites at all. Do I have to keep all the receipts from now on? Take a picture of everything I buy? Do I have to "prove" a loss? How would you prove theft? I had bad experience with insurance in the past and I want to make sure it's hassle free. I used to have renter's insurance, but I canceled it because I thought I didn't need it. I'm now thinking about getting one again.
Has anybody had a claim through his renter's insurance? They don't tell you much on their websites at all. Do I have to keep all the receipts from now on? Take a picture of everything I buy? Do I have to "prove" a loss? How would you prove theft? I had bad experience with insurance in the past and I want to make sure it's hassle free. I used to have renter's insurance, but I canceled it because I thought I didn't need it. I'm now thinking about getting one again.
You will need it when you least expect it...you better have it. In case of a fire or major issue nothing you own is insured by the LL unless the LL is causing it, but even a water break or fire next door and the fire department uses a lot of water, your stuff should be insured by you not by the LL.
You can help the issue of proof by taking pictures of your home and the stuff in it. You won't necessarily need receipts, the picture will prove you had that 52 in TV with a Bose speaker system. It is better to have the pictures than nothing. Insurance needs to verify the loss if a claim is made.
As said before, the LL is not responsible unless the LL caused the loss or the condition that caused the loss. Even harder to prove.
Protect yourself and get renter's insurance. It is cheap and worth the peace of mind.
Thanks for the input. Does this include even taking pictures of clothes ? I have some expensive things, but I would feel kinda silly taking pictures of that, but if it's needed I will, of course. When I had it the last time, I did not take any pictures at all. I think I did keep the receipts for the more expensive purchases, though.
Thanks for the input. Does this include even taking pictures of clothes ? I have some expensive things, but I would feel kinda silly taking pictures of that, but if it's needed I will, of course. When I had it the last time, I did not take any pictures at all. I think I did keep the receipts for the more expensive purchases, though.
Make a list of everything you own, with values or receipts if you have them.
I own my home, and my All State agent said:
a fire is a fire, no matter what, or who, caused it, even arson.
A fire could start when no one is home, and the landlord might try to say you were negligent in some way, even though the fire was started by vandalism, or bad wiring.
It is a good idea to take a photo of everything in every room, including expensive clothing. Put digital copies on a thumb drive. Then any expensive things you buy, throw the receipt into a box and periodically store those in your safe deposit box at the local bank or savings and loan, along with your will and insurance policies, etc. If the place burns down or gets hit by a tornado or flood, you won't have any of that evidence regarding your possessions if you don't have them backed up somewhere else.
Recommended contents of safe deposit box:
Quote:
RECOMMENDED
• Automobile Lease Agreements
• Automobile Titles
• Birth Certificates
• Confidential Items and Documents
• Employee Benefit Records
• Household Inventory Lists and Photos
• Income Tax Records
• Insurance Policies
• Jewelry
• Loan Documents
• Marriage Licenses
• Property Deeds
• Rare Coins and Stamps
• Stock Certificates
• Savings Bonds
• Trust Documents
In case of a loss, you can not expect to get fair value on all items.
After my parent passed away, there were some antiques. There was a large round oak dining table. It could not be replaced. It was one of a kind, so how to explain to an insurance company it's value?
And they usually go by replacement value, but there are things that can not be replaced.
As it turned out, in a drawer we found receipts for everything that had been bought in the house. We located the receipt for the table and it was bought in 1993 for $1800.00. How much we'd gotten in an insurance claim not sure.
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If you have any antique furniture, etc. take good photos.
In case of a loss, you might have to get "those photos" appraised as to value.
lol state farm. They actually had the cheapest quote, but also the lousiest policy...
What does replacement cost actually mean? What if there are newer versions of whatever product on the market? And perhaps my product was even discontinued... Am I just out of luck then ?
What does replacement cost actually mean? What if there are newer versions of whatever product on the market? And perhaps my product was even discontinued.
There are several different methods by which your insurance company may calculate the amount it will pay you for a loss.
Payment based on the replacement cost of damaged or stolen property is usually the most favorable figure from your point of view, because it compensates you for the actual cost of replacing property. If your camera is stolen, a replacement cost policy will reimburse you the full cost of replacing it with a new camera of like kind. The insurer will not take into consideration the fact that you ran three rolls of film through the camera every day for the last two years, causing a considerable amount of wear and tear.
In contrast, actual cash value (ACV), also known as market value, is the standard that insurance companies arguably prefer when reimbursing policyholders for their losses. Actual cash value is equal to the replacement cost minus any depreciation (ACV = replacement cost - depreciation). It represents the dollar amount you could expect to receive for the item if you sold it in the marketplace. The insurance company determines the depreciation based on a combination of objective criteria (using a formula that takes into account the category and age of the property) and subjective assessment (the insurance adjuster's visual observations of the property or a photograph of it). In the case of the stolen camera, the insurance company would deduct from its replacement cost an amount for all the wear and tear it endured prior to the time it was stolen.
What Does "Replacement Cost" Mean?
The term "replacement cost" is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Refer to your policy for the exact definition and explanation of replacement cost.
What is "Actual Cash Value"?
The term "actual cash value" is not as easily defined. Some courts have interpreted the term to mean "fair market value," which is the amount a buyer would pay a seller if neither were under undue time constraints. Most courts, however, have upheld the insurance industry's traditional definition: the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.).
So What's the Difference?
The only difference between replacement cost and actual cash value is a deduction for depreciation. However, both are based on the cost today to replace the damaged property with new property.
What About "Book" Value?
Note that accounting or "book" value has no relevance to either of the previous methods of valuation. The depreciation rate reflected in "book" value would yield a terribly inadequate settlement. Another problem with using "book" value is that it may reflect only the items that are "capitalized." To determine adequate limits, one must add "expensed" items into capitalized items.
Other Kinds of Valuation
Certain property may be subject to a special valuation basis other than replacement cost or actual cash value. The value reported should match the applicable valuation basis. For example, if the property policy is endorsed with a selling price endorsement for finished goods, the proper value to insure for finished goods is the cash selling price, less any customary discounts and expenses that otherwise would be incurred.
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