How to File a Renters Insurance Claim

When to File a Renters Insurance Claim

Filing a renters insurance claim can help recoup your costs after a financial loss. But it involves time and effort, and the claim may result in a premium increase later on. So before moving forward, you'll need to determine if it's worthwhile. Consider these factors:

• Potential payout: Estimate the payout you expect to receive and the deductible you'll pay out of pocket. If the payout is less than or close to your deductible amount, it may make more financial sense to pay for the loss yourself.
• Claims history: Insurance companies view frequent claims as a sign of increased risk. If you've filed multiple claims within a short period of time, then your insurer may raise your rates significantly or decide not to renew your policy.
• Cause of loss: Review your renters insurance policy to check whether the cause of your loss is covered. You can contact your insurer to check, but clarify that you're asking about coverage and not filing a claim at this stage.

Learn more: What Does Renters Insurance Cover?

How to File a Renters Insurance Claim

Understanding the process and gathering your documents in advance can help you file a renters insurance claim smoothly.

1. Document the Damage

Before you begin cleaning up, make a list of anything that was damaged, stolen or vandalized, along with the value of each item. Receipts and bank and credit card statements can help prove how much it will cost to replace those belongings. Take photos and videos to document the damage. You may also need to make temporary repairs to keep your home safe.

If you need to temporarily relocate, keep receipts of related expenses, such as hotel stays, gasoline and meals. Don't throw out damaged items until a claims adjuster has visited your home. They may need to assess the damage in person.

2. Contact Your Landlord

Call your landlord when an incident has occurred, and let them know that you're filing a renters insurance claim and why. They should be kept in the loop about what's happening on their property and may ask you to update them on the claims progress. Depending on what happened, the landlord may need to arrange for repairs, install security features or even file a claim through their own insurance.

3. File a Police Report if Necessary

If there was a crime, such as burglary or vandalism, call the police to report it. Take your own notes of the conversation, and write down the police officer's name in case you need the information later. Request a copy of the police report when it's complete.

4. Notify Your Insurance Company

Call your insurance company to confirm your coverage limits and deductible amount and learn about the claims process. Ask if there are time limits for filing the claim and how long the claims process usually takes.

5. Submit the Claim Form and Supporting Documents

Fill out the insurance company's claim form and submit it along with your supporting documents. These documents may include a list of lost or damaged items, photographs or videos of the damage, and receipts.

6. Work With the Adjuster

After your insurance company receives your claim and documents, it will assign an insurance adjuster to the case. The adjuster will review your file and may ask follow-up questions, request additional documentation and visit your home to check the damage in person. Responding quickly can help speed up the claims process. Depending on the insurer, you may be able to track the process online.

7. Get Paid

If the insurance company approves your claim, you'll typically receive a check for the cash value of your personal property. Once you repair or replace your items and provide receipts, you'll be reimbursed the difference between the item's current value and the replacement cost.

Will My Insurance Go up if I File a Claim?

If you file a claim, your renters insurance premium may increase the next time you renew your policy.

That's because insurance companies consider your claims history and the likelihood you'll file a claim in the future when calculating your premium. Generally, filing more claims raises the insurance company's risk, so it increases your premium accordingly.

The amount of the increase depends on your insurance company's calculation. The good news is that, because renters insurance is already inexpensive, any increases may only amount to a few dollars per month.

Tips for Saving on Renters Insurance

Getting the protection you need doesn't have to break the bank. These tips can help make your policy more affordable.

• Raise your deductible. Increasing your deductible generally results in lower premiums. However, if you do this, be sure you can afford to pay the higher deductible if you need to file a claim.
• Bundle your insurance. Many insurers offer discounts to policyholders who bundle insurance policies, meaning getting more than one type of insurance from the same company.
• Install safety devices. Items like security systems, smoke detectors and deadbolt locks can help prevent and alert you to potential problems so you can take care of them quickly and minimize damage. Having these items in your home may result in a lower premium.
• Shop around. Because insurers use proprietary formulas to determine pricing, rates can vary significantly between companies. Shopping around and comparing quotes from multiple providers is one of the best ways to find the lowest possible rate.

The Bottom Line

Filing a renters insurance claim is usually a straightforward process that starts with documenting your loss and notifying the appropriate parties. After you submit the claims form and your documentation, you'll work with a claims adjuster who will review your file. If the adjuster approves your claim, you'll receive a payout within a few weeks.

In many states, insurers check your credit-based insurance score when setting rates for renters insurance. Since these scores are based on much of the same data as your consumer credit scores, positive financial habits like paying bills on time and minimizing credit usage could improve your scores, which may help reduce your renters insurance costs.