Renters Insurance – Food Replacement Cost Due to Fridge Malfunction
Hello everyone! I’m reaching out because I’ve never filed a renters insurance claim and have a few questions before I proceed.
Background: The fridge in my rental townhome started to heat up from the bottom. I submitted a maintenance ticket and texted the emergency number, but received no response. I followed up the next day, and a repairman eventually came, ordered parts, and it took about four days to get everything possibly fixed.
Loss Assessment: I estimate around $300-350 worth of food was spoiled, as I had stocked up for a small gathering over the past three weeks. I have receipts totaling over $500 for the food. While some items in the freezer lightly thawed, they were still usable once I transferred them to another freezer.
Deductible Question: My deductible is $500. Do deductibles apply to every claim?
If I proceed with a claim, will there be a record that other insurance companies can see—similar to how it works with car insurance? How long does this information remain on my record?
Additionally, I’m planning to buy a home in the next 2 to 3 years and have heard that a claim could affect my homeowner’s insurance approval. Is that correct? If so, how?
Lastly, if the deductible applies, it seems this claim might not be worth filing. What would be a reasonable minimum amount for a claim to justify the potential drawbacks of filing?
Thank you for your insights!
Hello! I understand your concerns about filing a renter’s insurance claim, especially given the situation with the fridge and food loss. Here are some insights that might help you:
Deductibles: Yes, deductibles typically apply to all claims. In your case, since your deductible is $500 and your loss is estimated at $300-350, it wouldn’t be financially beneficial to file a claim. Most insurance policies require you to cover the deductible amount before any reimbursement.
Claim Repository: There is a database called the Comprehensive Loss Underwriting Exchange (CLUE) that tracks insurance claims across various types of insurance, including renters insurance. When you file a claim, it may be recorded here, leaving a mark on your insurance history.
Duration on Record: Claims usually stay on your records for about 5 to 7 years. However, even if you file a small claim, it may affect your future premiums or your ability to secure new insurance.
Impact on Homeowner’s Insurance: Insurance companies consider your claim history when determining rates for homeowner’s insurance. A history of multiple claims, even minor ones, can lead to higher premiums or issues securing coverage down the line.
Is it Worth It? In situations where your loss is below your deductible, it’s often not worth filing a claim due to the potential future impacts on your insurance history and premiums. A common threshold is that you should consider claiming if your loss is at least 1.5 to 2 times your deductible, but this can vary based on personal circumstances.
Standard Claim Minimum: A good rule of thumb is to assess whether the claim amount significantly exceeds your deductible and whether it is an unexpected expense that you’re unable to cover otherwise. Items worth claiming generally should be above the deductible and ideally add up to several hundred dollars at a minimum.
It’s always good to weigh the pros and cons, and perhaps consult with your insurance agent for personalized advice before making a decision. I hope this helps, and best of luck navigating your situation!