Challenges Facing Burglary Victims Who Seek Insurance Reimbursement
Many hurdles have to be surmounted before crime-conscious individuals who have taken out renters or homeowners insurance can collect money to cover their losses inflicted by intruders who stole their valuable possessions. Here are some issues that can arise, step-by-step:
The crime scene should not be disturbed until detectives arrive.
A police report must be filed in a timely manner.
An inventory must be prepared of the items that were in the home that now are missing or damaged (broken locks, smashed windows).
Having an updated home inventory list to work from will be useful. Receipts, photographs, and appraisals that verify the value of stolen items will be necessary to document major losses.
If the policy language reads “actual cash value,” then the amount of reimbursement will be only a fraction of the original costs because of depreciation. If it reads “replacement value” (which requires higher premiums before the crime occurs), the reimbursement will be greater in order to pay current prices.
The insurance company may send a claims adjustor to the home to assess the size of the loss.
If the total value of the items that were stolen adds up to less than the amount of the policy’s deductible, then no reimbursement will be forthcoming.
If the grand total far exceeds the cap or limit, then only partial reimbursement will take place.
If the claim is for a substantial amount, the cost of subsequent years’ premiums could be increased.
The company will take weeks to process the claim before sending a check.
Unjustified delays, gross negligence, or dishonesty on the victim’s part could cause the claim to be reduced or rejected, as noted in the policy’s fine print.
Claims for the loss of big ticket items filed by persons undergoing financial hardships will raise suspicions about possible insurance fraud.
Too many claims can cause the policy to be cancelled, and it may be difficult to find another company that will offer homeowner’s or tenant’s insurance for a dwelling that is classified as high risk.
SOURCE: (Adapted from Siedsma, 2012).
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