I’ve had renter’s insurance for years and have thankfully never had to file a claim until now; reason being – my bike was stolen. Now, most people who poo-poo a bike being stolen as reason to file an insurance claim, but my bike was important to me and wasn’t cheap. I also found out that because I’ve never filed a claim in all the years I’ve had insurance, this particular claim won’t affect my premium. (Or so the insurance company is claiming. Let’s hope that’s true.)
After calculating the cost of my bike and all the accessories I had on it, I’m looking at netting around $650 after paying my $100 deductible. This will give me enough money to purchase another bike and possibly allow me to upgrade a bit too. In some ways I feel entitled to this amount. If I added up all the money I’ve paid the insurance company over 10 years, I’ve paid in close to $5,000. Them paying me $650 is a little more than 10% of what I’ve paid in all these years.
Allow me to justify this claim a bit more:
My bike was locked up in a “secure” underground garage. There’s only a couple of ways to enter and exit this subterranean parking structure. My guess is that the person or people who stole the bike were probably workers who were installing carpet. Or possible tenants moving out (though this is less likely). Since the bike was locked on my property, my renter’s insurance covers this loss. My bike also wasn’t a $100 target bike (not that there’s anything wrong with Walmart or Target bikes.) I paid $400 for the bike and added accessories over the years (back rack, collapsible baskets, front and rear lights, a cycle-meter, etc.) that totaled another $350 in value. It was still in very good condition with a few scratches around the handle bar area where I kept my Kyrptonite cable lock. I loved that bike and wasn’t thinking of “upgrading” anytime soon.
It was also a major mode of transportation for me. I’d ride it 3 – 4 times a week to work and back and a couple of times to Starbucks. Since I now have to drive everywhere until I purchase another bike, my cost of gas is going to go up. I personally would rather have my bike back than go bike shopping, but since that isn’t going to happen, I’ll take the insurance money and upgrade a bit.
Oh, and I think I’ve also solved the issue of my bike being stolen from the garage in the future. We have a secure storage unit that’s padlocked. Mr. LH completely rearranged it so we can now fit our bikes in there as well. It’s a bit more of a hassle getting in and out, but it’s much more secure and out of sight from thieving eyes. That should stop future bike thieves, at least on my own property.
Have you ever filed a renter’s or home owner’s insurance claim?
4 Comments
I’ve never filed a renter’s claim, luckily. You’re right: there should be no change to your premium based on your claim value vs. the amount you’ve paid in. They can identify people trying to get a free lunch quickly…and you definitely weren’t the one. What’s frustrating is that sure you have the money, but it’s got to be annoying now having to spend that time to buy a new bike and all the parts. The older I get the more I cherish the time vs. the cash.
@Average Joe – It is annoying and it takes time. I hate not having a bike for so long!
I’ve never had to file either type of claim – just car insurance. It was super easy, but I’m not looking forward to having to file anything, ever. 2 summers ago, there was a major hail storm and had I owned a property, I would have had to file, but since I didnt, I’ll have to do it at some point.
Replacing all of your furniture and electronics can become quite expensive. That’s why renters insurance can be so helpful. You will be given money to help you replace what was damage, stolen or destroyed. This way, the financial burden isn’t so great when you go to replace everything you have lost. You will also need to make sure that you understand exactly what is covered, since not everything is eligible with renters insurance.