Debating on Whether to Submit a Second Theft Claim for Renters Insurance
Today, my bicycle valued at $2,000 was stolen while it was locked outside. Before I go ahead and file a claim, I’m curious about your thoughts on whether submitting two theft claims in two years could lead to me being dropped by my insurance provider.
Last year, I had another bike stolen and received a payout of approximately $1,200. While I’m okay with a potential increase in my premium next year, my main concern is ensuring that I won’t find myself in a position where I can’t get renters insurance in the future.
For some context, I have renters insurance through Assurant, which covers $5,000 in personal property, $50,000 in personal liability, with a $500 deductible, and costs $90 a year. My belongings are pretty modest—no valuable items like jewelry or designer goods. I only have some IKEA furniture, an old laptop, and this bike. And just to clarify, I live in Chicago, where bike theft is unfortunately quite common.
It’s understandable to be hesitant about filing a second claim, especially considering the potential impact on your future insurability. Here are a few points to consider:
Insurance Policy Terms: Most insurers will look at your overall claims history when renewing your policy or considering you for new coverage. While having two claims in two years could be a red flag for some companies, it varies by insurer. Some are more lenient than others, especially for certain types of claims.
Claim Frequency: Two theft claims in a two-year period may increase the likelihood of your policy being non-renewed or your premium rising. However, if the incidents are clearly outside your control (like theft in a high-crime area), they may consider that.
Market Considerations: Since you mentioned that you live in an area with a high rate of bike theft, having evidence of these circumstances might help your case. Some insurers might take this into account during their review process.
Long-Term Strategy: If you’re worried about being dropped, consider whether you can absorb the loss of the bicycle without filing a claim, especially since you mentioned that premium increases don’t concern you as much. If it’s a relatively small financial hit compared to potential long-term consequences with your insurance, it could be worth it not to file.
Consult with Your Insurer: You might consider reaching out to Assurant directly to ask how they handle second claims for similar incidents. This could give you a clearer idea of your situation without committing to a claim right away.
Ultimately, weigh the immediate financial loss against possible long-term implications on your insurance. If filing the claim feels necessary, make sure you have documentation of the theft and the circumstances around it to support your case. Good luck!