According to the FBI, more than 500,000 residential burglaries occur every year. That equates to one every 15 seconds.
While the chances of your home being burglarized depend on where you live and sometimes, just plain luck, it’s important to be prepared for filing a claim in case you are victimized.
After a burglary, it’s common for the homeowner to be stressed, scared and feeling violated. Despite that, you have to have a clear head when filing your claim — and getting it paid can depend on how well you prepare.
What your policy covers
Damage to your home and theft of your possessions from a break-in are typically covered by a standard homeowner’s policy.
The “dwelling” portion of your policy will cover any damage to your home that occurred during the burglary. Most policies pay to repair or replace the damage with same-quality materials. There is generally no deduction for depreciation, the decrease in the value of the materials due to age or wear.
The personal property portion of the policy may cover the cost of stolen items. If you have “replacement cost” coverage for your personal belongings, your insurer will likely value a stolen item at the cost it would take to repurchase it at today’s prices.
But if you have “actual cash value” coverage, the carrier will likely deduct for depreciation, paying only what the stolen item would sell for today, not the cost to buy it anew.
You likely won’t reach your policy limit from damage to your home from a burglary, but the same may not hold true for your personal property.
Most policies provide coverage for your possessions at about 50-70% of the amount of insurance you have on your home. For example, if you have $300,000 in dwelling coverage and bought a policy that sets personal property coverage at 70%, your belongings would be covered up to $210,000.
However, certain types of property, like jewelry or electronics, will likely have their own limits. For instance, jewelry coverage might be capped at $1,000 or $2,000. We can advise you on what to expect from your policy.
Also, don’t’ forget your deductible, which the insurer will deduct from any settlement.
In case of burglary
If you’ve been burglarized, the first step should be to file a report with the local police or sheriff.
The next step should be to file a claim with your homeowner’s insurance company. Your insurer will ask for a copy of the police report.
A claims adjuster may come to your home to assess your loss. The more information you can provide about stolen items, the quicker the claims process will be. Take photos or videos of damage. Document areas of your home that were damaged or where missing items were stolen.
The best way to get your claim paid is to prepare in advance by creating a home inventory, complete with receipts, photographs and appraisals that verify the value of pricey collectible items. That way you can provide the insurer the relevant information, significantly expediting the claims settlement process.
To verify the value of your stolen possessions, your insurance company might ask for:
- Bank statements
- Credit card statements
- Photographs
- Receipts
- Serial numbers
- Warranties
You’ll also want to make any emergency repairs that will help protect your home from further damage. For instance, you may need to replace broken windowpanes or door locks that were damaged during the break-in. Be sure to save your receipts because your insurer may reimburse those expenses.
Article Source: https://www.insurancenewsletters.com/