Thinking Twice About Filing My Second Theft Claim for Renters Insurance
Today, my bicycle, valued at $2000, was stolen while it was locked up outside. Before I go ahead and file a claim, I wanted to get your thoughts on whether submitting a second claim in two years might lead to my insurance being canceled.
Last year, I had another bicycle stolen and received a payout of about $1200. I’m not overly concerned about my premium increasing next year, but I am worried about potentially losing the ability to get renters insurance down the line.
For context, my renters insurance with Assurant covers $5,000 in personal property and $50,000 in liability, with a $500 deductible and an annual premium of $90. I don’t have many valuable items—just some basic IKEA furniture, an old laptop, and this bike—so I opted for lower coverage. And just to clarify, I’m not careless with my possessions; I live in Chicago, where bike theft is unfortunately common. Any advice?
It’s understandable to be hesitant about submitting another claim, especially with the concern of getting dropped by your insurance provider due to multiple claims. Here are some points to consider:
Insurance Claim History: Many insurers do look at your claims history when deciding whether to renew a policy. Having two theft claims in a short period might raise a red flag for some companies, but policies can vary widely.
Impact of a Claim: While your premium may increase, some insurers might not drop you immediately after a second claim. It may depend on their specific policies regarding multiple claims and the overall risk assessment they perform.
Preventative Measures: Make sure to take steps to prevent future thefts, such as using more secure locks or storing your bike indoors whenever possible. This can help mitigate risk in the future and could be considered by your insurer.
Consult Your Policy: Review your renters insurance policy details or speak directly with your agent to better understand the implications of filing another claim. They can provide insights into how this might affect your renewal options.
Alternative Coverage: Consider whether looking into specialized bike insurance or a policy that covers theft in more detail might be worth it, especially if bike theft is a persistent issue in your area.
Ultimately, if you’re comfortable with the potential for a premium increase and you want to replace your stolen bike, filing the claim might be worthwhile. Just weigh the pros and cons carefully before making your decision.