How to File an Insurance Claim Under Your Personal Property Coverage

Why do you need personal property insurance? Because during a storm, a tree might fall and crash right through your living room window, leading to smashed furniture and water-soaked carpets. Or a fire could break out and destroy everything in your garage, including your tools.

In other words, this coverage is there when the worst happens to your home. The odds are against such a calamity – according to the Insurance Information Institute, over a five-year period, only about 6% of households filed a claim. But when they did, the average amount was high; more than $15,000.

By understanding how this type of insurance works, you’ll be better prepared to submit a personal property claim when damage occurs.

What Is Personal Property Coverage?

Personal property insurance covers damage to your personal property, such as your furniture, clothing, or electronics, after a covered event, such as a fire. This form of coverage helps you repair or replace the damaged items.

Personal property coverage is usually part of the following policies:

Homeowners

If you own a home, you likely have a homeowners insurance policy, not least because your mortgage lender requires it. Homeowners insurance protects your house’s structure, including its walls and roof, but policies also include personal property protection for your belongings. If your belongings are damaged or stolen, you can get reimbursement for the items.

Renters

Renters insurance policies include liability insurance and personal property coverage. If your items are stolen or your laptop is damaged by water from a broken pipe, your renters policy helps cover the cost of replacing your stuff.

5 steps to filing a personal property claim

Hopefully, you never have to file a personal property insurance claim. But, if you have to deal with a storm or other damage, here’s what you need to do to file a claim:

1. Review your policy

Before contacting your insurer, review your policy. Key sections to look for include:

• Covered events: Make sure that your policy includes personal property coverage, and that the event that caused the damage is covered. For example, most policies will cover damage related to fire, theft, or hail. But damage related to floods or earthquakes usually requires separate coverage.
• Deductible: Your deductible is how much you have to pay before your insurance policy covers the claim. If the damaged property is worth less than your deductible — for example, if you have a $1,000 deductible and your $500 tablet was stolen — your insurance won’t help with any of the cost.
• Actual cash value vs. replacement: Finally, pay attention to whether your policy reimburses you the actual cash value (ACV) or the replacement cost for your damaged items – the latter being more desirable. ACV is the price of your items with depreciation taken into consideration, while replacement cost reimburses you to replace your damaged items with new versions.

2. Document the damage

Once you’ve confirmed what your policy covers, you should document the damage that occurred, in both photos and video. If it’s safe to do so, try and capture these images as soon as possible, before moving anything or making repairs. Take photos at multiple angles that show the impact to your belongings, and any evidence of what caused the damage, such as a burst pipe or smashed window.

Once you’ve taken photos and video, you can take the needed steps to prevent further damage. For example, board up a broken window or cover it with a tarp to prevent more water from trickling in.

Keep receipts for any materials you purchased to repair the damage, even if it’s a temporary fix.

3. File reports

If the damage is due to vandalism or theft, contact the police right away; you’ll likely need a copy of the police report when you file your insurance claim. Be sure to note the police report number and the officer’s badge number for your records.

4. Contact your insurance company

Next, get in touch with your insurance company. Procedures vary by the insurer, so review your policy for specific details. Some companies allow you to start the claims process online, while others require you to call their claims department, so review. When you submit the claim, you’ll have to describe what the event was that caused the damage, what was broken or damaged, and the date the event occurred.

The insurance will assign a claims adjuster to review your case. The adjuster may contact you, request documentation or photos, or even schedule an in-person inspection to assess the damage.

5. Review the settlement offer

After reviewing your information, the insurance company will issue you a settlement offer — the amount they’re willing to give you for your losses.

If it’s lower than expected, you can request additional information or ask questions. You can also appeal the decision if there are factors the claims adjuster didn’t consider; for example, if the reimbursement check for a damaged TV assumes a basic model and it was actually an expensive state-of-the-art TV, you may qualify for a modified settlement if you can provide receipts for its value.

Tips for a smooth personal property claims process

Filing a personal property claim is relatively simple. To make the process as stress-free as possible, follow these tips:

• Prepare a home inventory: If your home is completely destroyed in a fire or storm and all of your belongings are destroyed, you don’t want to rely on your memory to file a claim. Creating a home inventory listing all of your valuables, including electronics, collectibles, accessories, appliances, and other items will help you get the maximum amount of reimbursement possible. Going forward, keep a spreadsheet listing the name, serial number, price, and purchase date of any major new purchases.
• Take video and photos of your home in its current state: Having video and photos of your home as it is right now, in its undamaged state, can be invaluable when you file a claim. It can provide proof of your claim, and help jog your memory if you need to list what items were damaged.

Act quickly: With most policies, you’re required to file a claim in a timely fashion, so review your policy for specific timelines. In general, the sooner you file, the better.