Having insurance makes it easier to sleep at night when you know your possessions and financial future are protected. But the idea of having to actually make a claim might give you nightmares.
The best way to protect yourself when making a claim is to understand not just the process but the protection you have before you have to use it. Stick around to learn more about common insurance claims, including those that are common with certain policies.
What is an insurance claim?
If you’ve never had to make an insurance claim, consider yourself lucky. Whenever you have loss or sustain damage caused by a peril, you can make a claim to your insurance company, and be financially compensated for your loss. This is why it’s important to not just have insurance, but fully understand what it covers and if there are any limitations or exclusions to your coverage.
Making a claim isn’t difficult but there are several steps involved. If you’re working with an experienced broker, the process should be painless as they walk you through it. We’ve seen our share of claims and wanted to go over some of the most common, by policy type, so that you can be better prepared if you find yourself making a similar claim one day.
Common Renters Insurance Claims
Renters insurance is a must for renters, as a landlord’s policy will only cover the structure of the building and not the items in your apartment. Consider the following common claims when trying to decide if it’s worth it (hint: it is!)
Fire
We know that you’re responsible and rocking out this thing called life, but we can’t say the same for your neighbor. If they leave a candle burning that causes a fire in their unit, which then spreads into yours while you’re out having dinner, the loss of your items can be financially devastating. With renters insurance, your items are replaced based on the type of policy you’ve chosen, helping you get back on your feet.
Theft
Renters insurance can cover you from theft in two ways. The first way applies to theft that takes place in your home. If your apartment is broken into and the thief helps themselves to a few of your things, they’ll be replaced. But it can also cover you while you travel. If you’re out of town on a long weekend and someone snatches your suitcase while you’re checking into your hotel, the items inside would be covered. However, your policy may not include protection during travel automatically. You may need to add on an endorsement to ensure you’re covered.
Water damage
We see this claim quite a bit so it’s important to note that there are limitations when it comes to water damage. You will be covered if water damage is caused by a burst pipe. But if you want to be protected from a sewer backup or sump pump failure, you’ll need to speak to your insurance agent about adding an endorsement to your policy. Finally, flooding is a separate policy all together. If you live in a flood zone, speak to your agent about your coverage options.
Common Co-op Insurance Claims
We find that common co-op claims are similar to renters insurance claims but here are some you may come across if you’re a co-op unit owner.
Personal liability
This is a big one that many don’t realize is part of their co-op insurance. If someone is injured in your co-op from a simple accident like tripping on a rug or falling over a chair, their medical bills become your responsibility. Co-op insurance has a cap with this type of coverage, depending on the amount you’ve chosen. Speak with your insurance agent if you’re not clear on your personal liability coverage caps.
Also, should that best friend of yours decide to sue you for lost wages or emotional distress due to their injury, co-op insurance covers litigation costs until your cap is reached.
Another person’s property
You’re normally not clumsy but you have your days. Imagine your friend is over and they brought their new laptop. You’re enjoying its features and impressive resolution when you suddenly knock over your glass of wine onto the keyboard. You try and mop it up, but you know it’s too late. The damage is done. Co-op insurance will save your friendship by covering the laptop.
Additional living expenses
Here’s another claim that many are unaware of. If your co-op becomes uninhabitable, either due to a fire or other covered incident, and you need to relocate to a hotel or family member’s house out of state, your coverage will reimburse you for your traveling, food, and other expenses.
What most don’t think about is that even though their co-op will be rebuilt with their landlord’s insurance policy and their items will be replaced by their co-op insurance policy, they could be left with extra bills due to dislocation. Having this added peace of mind will ensure a disaster doesn’t throw you off track.
Common Chubb Insurance Claims
Chubb Insurance is for high-end valuables. It provides added protection a standard policy can’t due to coverage caps and limitations. Here are some common Chubb Insurance claims you may find yourself making.
Jewelry
Most standard renters insurance policies cover jewelry but only up to a certain dollar amount. Therefore, a Chubb insurance policy is ideal for anyone with a healthy jewelry collection. Provide them with all the information about your pieces, such as cut, carat weight, materials, and cost, and they will be 100% covered.
For example, if your 2-carat engagement ring falls down the drain or slips off while window shopping on Fifth Avenue, a Chubb policy will cover it.
Art
If you own a truly one of a kind piece of art, having extra protection is a must. If a fire damages your Andy Warhol original, knowing that it will be compensated will allow you to display it with pride and confidence.
Antiques
Most antiques are simply irreplaceable, and their monetary value can be through the roof. So, if your antique dining table is lost in a covered incident or your great-great grandfather’s pocket watch is stolen, knowing that they will be compensated for is reassuring.
Collectibles
Whether you collect vintage coins, expensive bottles of wine, or classic automobiles, insuring your collection is a must. Chubb offers two ways to do this. You can either go with a blanket policy that protects the full collection or insure each individual piece. You can also use a combination of the two types for superior protection.
As you can see, there are a variety of policies out there and plenty of claims that you could find yourself making. Whether you rent an apartment or co-op or own unique and valuable items, insurance is simply a must. Taking the time to secure coverage today will provide you with a calmer tomorrow.
