Has anything ever been stolen from you? How about, let's say, your laptop, phone, or perhaps some jewellery? Unfortunately, almost everyone will experience that really bad circumstance at some point.
According to Statista, there were nearly 6.45 million property theft instances in the US in 2020, which is equal to the combined population of Los Angeles and Chicago.
How can you lessen the blow, besides carrying your rucksack on your chest, buying some really heavy locks, and setting up an alarm system?
It seems that renters insurance might assist with a reimbursement if your belongings are stolen inside or outside of your home. Your renters insurance coverage, which covers your laptop at the coffee shop and your phone on the train, can help you feel less anxious about theft.
What is a Renters Policy?
Most individuals are unaware that renters insurance can assist protect you and your belongings if you are renting a home. While your landlord is (generally speaking) liable for any damage to your walls or the building's framework, they are not liable for you or your belongings.
Personal property, personal liability, and additional living expenses (referred to as "loss of use" in the insurance industry) are the three categories of coverage that renters insurance normally offers. What are they all trying to say?
Personal property coverage: aids in replacing your possessions if they are lost or harmed by a risk that is covered, such as burglary, fire, windstorm, etc.
Liability Coverage: If a visitor is hurt while visiting your home or if you accidently damage someone else's property, liability insurance will protect you.
Loss of Use: aids in covering expenses like hotel charges or storage fees in the event that a fire or severe weather renders your home uninhabitable.
If your claim is accepted, your insurance provider will pay you back, less your deductible. Let's assume that your stolen $750 iPhone had a $250 deductible. You'd receive $500 from your insurer.
When does theft go under renters insurance?
As long as you've obtained enough coverage for them, your renters insurance will cover the majority of your belongings for theft both inside and outside your house, including electronic devices, furniture, clothing, and jewellery!
What is meant by "adequate coverage"? Your insurer will specify your coverage limit, or how much they can pay you if something happens, for each of the coverage types mentioned above (personal property, personal liability, loss of use, etc.).
Therefore, if you decide to purchase personal property coverage for $30,000 (also known as coverage for your belongings), your insurance provider may pay you up to $30,000 for your stolen property. However, if you select only $10,000 in personal property coverage and more is stolen, your renters insurance provider will only be able to reimburse you for $10,000. (minus your deductible, of course).
Be aware that there are a few situations in which theft is not protected by renter's insurance. Your renters insurance policy won't protect you if your checked luggage is stolen while it is in the care of an airline because the item was in the ownership of a third party.
Additionally, your insurer can decide not to accept your claim if they determine that you were negligent in allowing the theft to occur, such as by leaving your bicycle unlocked or the keys in the front door.
Actual cash value in comparison to replacement cost
If your theft claim is accepted here at Lemonade, you'll often get the replacement money put back in your pocket (minus your deductible, of course.) What does this signify, though?
Consider replacement cost as the "Amazon price" of what your item (of the same make and model) would fetch if it were to be purchased today.
Accordingly, your replacement cost would be $250 if you previously paid $300 for headphones and the current retail price for the same brand and model is $250.
Most personal property claims are valued by certain insurers using actual cash value, or ACV, which is given to tenants. The actual monetary worth of the bike will be used by most insurers to determine how much they will reimburse you for your stolen bike. Consider it the "eBay" price for your product.
What if something was taken from outside my house?
The fact that you are also protected against theft away from your residence is one of the finest things about renters insurance. The loss of your laptop from the neighbourhood coffee shop or the theft of your phone from the subway means you are covered.
And how far does that coverage extend? Even while you're travelling, your personal things are protected against theft!
Let's imagine you are travelling for business and arrive at your hotel without your iPad. Or perhaps you were dancing at a music festival when your phone was stolen; in that case, your renters insurance might have you covered. There are a lot of typical circumstances that renters insurance will protect you from, in brief.
Are cars and bicycles covered by renters insurance?
Thank goodness bike theft is covered by renters insurance. You are protected whether your bike was taken from your apartment or the neighbourhood gym.
Also, keep in mind that car theft is not covered by renters insurance. Your auto insurance covers cars separately. However, renters insurance will protect you if your personal belongings, such as a laptop, or your vehicle are stolen.
Does renters insurance cover cash that has been stolen?
Theft of cash is covered by renters insurance, but only up to $200.
Why? If there was no limit to the amount of money protected, it would be far too easy to accuse someone of stealing $10,000 in order to receive a quick payoff.
The deductible would be deducted from the entire worth of your stolen property, on the other hand, if someone had stolen your backpack that contained your laptop, phone, and cash.
Is stolen laundry covered by renters insurance?
Yes, it does! Almost all of your possessions, even your favourite pair of jeans and your go-to gym outfit, are protected against theft by renters insurance. Renters insurance would therefore protect you if your laundry was stolen anywhere—at the laundromat, in your apartment building's laundry room, or elsewhere.
Be aware that your renters insurance won't protect you if you pay someone to do your laundry (for example, through a drop-off service) and it is stolen while in their care. Only stolen property that is in your possession is covered.