I’m having second thoughts about submitting my second theft claim in two years for my 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’m wondering if there’s a risk of being dropped from my policy due to too many claims.
Last year, I had a bike stolen and received about $1200 in payout. I’m not too concerned about the possibility of a premium hike next year, but I really don’t want to find myself in a position where no insurance companies are willing to offer me renters insurance in the future.
For some context, I have renters insurance through Assurant with $5,000 in personal property coverage, $50,000 in personal liability, a $500 deductible, and an annual premium of $90. I don’t own any high-value items—just some Ikea furniture, an old laptop, and this bike. And just to clarify, I live in Chicago, where bike theft is unfortunately common, so please don’t judge me too harshly for losing another bike!
I can understand your hesitation about filing a second claim so soon. While each insurance company has its own policies regarding claims, filing multiple claims within a short period can potentially raise a red flag. Insurers often consider the frequency of claims when evaluating risk, and too many claims might result in higher premiums or difficulty obtaining coverage in the future.
Here are a few things to consider:
Review Your Policy: Check your renters insurance policy to see if it mentions anything about claim limits or potential consequences of multiple claims. This might give you a clearer idea of what you could be facing.
Contact Your Insurer: You could reach out to Assurant and discuss your situation without formally filing a claim. They may provide insight into how your previous claim might impact future coverage. This could help you gauge the risk of being dropped.
Consider Alternatives: If you’re worried about the implications of another claim, you could explore other options, such as self-insuring for this loss (i.e., absorbing the cost yourself) or seeking bike-specific insurance that might cover theft more favorably.
Assess the Value of Your Bike: Since your bike was worth $2000 and you had a prior claim for $1200, consider whether the payout after your deductible is worth it to you. Balancing the immediate financial loss against future insurance implications is essential.
Ultimately, if you feel the bicycle’s value justifies the claim, and you’re okay with the potential increase in premiums, filing might be the right choice. Just be mindful of how it could impact your insurance options in the long term.