Last summer, I discovered an excellent apartment in the ideal location for rent. I felt settled shortly after moving in, but it did not stay long.
Temperatures in Atlanta dropped to single digits just before Christmas. Everyone was concerned about their pipes busting. While away visiting relatives for the holidays, I realized that my apartment was flooded.
The sudden drop in temperature had caught many residents off guard. Local news reports were filled with stories of burst pipes and water damage across the city. As I scrolled through my phone, reading about the chaos unfolding back home, I couldn't shake the feeling of unease. Little did I know, my apartment would soon become another statistic in this winter disaster.
The worst thing about the flood was that it didn't come from my pipes; it originated from the neighbor two stories above and finally landed in my unit (on the first level). The destruction was considerable. My whole property was covered with one inch of water. My nice vacation was cut short, and the months that followed were unlike anything I had ever experienced before.
I've had my fair share of automobile accidents and auto insurance claims, but this was my first time experiencing a severe loss and submitting a renters insurance claim. Here are the most useful lessons I've learnt.
Ensure You Have Sufficient Coverage
When it came time to purchase renters insurance, I did what most people do when valuing their personal property: I took a wild estimate and hoped for the best. Despite inheriting antique furniture and acquiring high-quality stuff, I had never really checked my possessions to ensure that my coverage limit was enough.
After submitting my claim with the insurance company, I had to prepare a list of everything that needed to be replaced, including an estimate of the cost of each item. Seeing the numbers stack up made me realize I was severely underinsured. I lost over half of my goods, which were worth approximately the whole amount of my coverage. If I had lost everything, I would have had to pay thousands more.
The realization of being underinsured hit me like a ton of bricks. It wasn't just about the monetary value of my possessions; it was about the sentimental value attached to many items that couldn't be easily replaced. Family heirlooms, gifts from loved ones, and mementos from travels – all these were now at risk. This experience taught me the importance of not just insuring for replacement cost, but also considering the emotional value of our belongings when setting coverage limits.
After my claim was resolved and I began replacing goods, I upgraded my personal property coverage to a more reasonable level. The combination of a claim on my record and increased personal property coverage increases my rates, but it's worth it to me right now.
An Emergency Fund Is Essential
An insurance claim requires time. It might take months before you get your whole settlement, so you'll have to pay some expenditures out of pocket and submit invoices for reimbursement. I remained in a motel for the first two weeks. My insurance paid my moving costs. I had to pay to dine out and do laundry at the hotel since I didn't have direct access to a kitchen, washer, or dryer.
I anticipated I'd be in temporary accommodation for a long, and because I work from home, I decided to terminate my stay at an Airbnb. It was less expensive long-term than a motel, therefore my living cost advantage lasted longer.
The relocation business only authorized direct billing for hotels, so I had to pay for the Airbnb up advance. I spent hundreds of dollars out of pocket before receiving reimbursement. Fortunately, I had set up an emergency fund years ago to cover these unanticipated circumstances.
Document, Document!
To file my claim, I needed to provide evidence for everything damaged or destroyed. The more information you provide, particularly for important goods, the quicker your claim will be handled. I felt lucky to have access to my damaged goods. I began by taking footage of the destruction and all of my stuff. I spoke throughout the video, opening drawers, closets, and cabinets. I also photographed expensive objects to demonstrate their worth. I utilized the recording to compile an itemized list of what needed to be replaced.
When creating your list, provide a thorough description of the item, the date purchased, and the purchase price (along with copies of receipts if available). If you have a video and images to go with the list, make sure to mention the room or location of each item. In addition, retain receipts for any expenditures you incur along the road so you may submit them for reimbursement.
As I meticulously documented my belongings, I couldn't help but reflect on the importance of regular inventory checks. Many of us accumulate possessions over time without realizing their collective value. This experience taught me the value of maintaining an up-to-date home inventory, not just for insurance purposes, but also as a way to reassess our material needs and declutter when necessary. It's a practice I now recommend to friends and family, emphasizing how it can streamline the claims process in the event of a disaster.
Your Payments Arrive In Phases
Renters and homeowners insurance plans allow you to cover your personal belongings for either replacement cost or actual cash value (replacement cost less depreciation). Since I had replacement cost coverage, I expected to get a single payment for the whole worth of the things lost. My insurance first paid just a fraction of the claim and withheld an amount known as recoverable depreciation. After demonstrating that I utilized the money to purchase new products, I got a second payment for the remainder. This is intended to prevent insurance fraud.
You do not have to replace every thing you lose. You may collect the whole claim if you can demonstrate that you spent a large percentage of your insurance premium on new things. If you have to move temporarily and are reimbursed for extra living expenses, those payments may be made over time as you incur expenditures and submit receipts.
Allow Yourself Compassion And Time To Adapt
relocating is always hard and emotional, but relocating unexpectedly and losing a substantial amount of your stuff is very devastating. Getting everything in order might often seem like a full-time job. Additionally, certain unforeseen incidents slowed the procedure. My insurance adjuster contracted COVID-19 and was out of work for a time. I had to postpone the moving date because the individual I hired to transfer my belongings into storage was involved in a vehicle accident. Months later, I'm still coping with being moved, storing possessions, replacing them, looking for a new place to live, and unpacking.
As I caught up with work and repaired my personal life, I learned to prioritize self-care and allow myself to be kind. I will be eternally thankful to friends and family who stepped in to assist, as well as customers who have been patient while I attempt to catch up.
The emotional toll of this experience was perhaps the most unexpected aspect. While dealing with the logistics of insurance claims and relocations, I found myself grappling with a sense of loss that went beyond material possessions. The comfort and security of 'home' had been disrupted, and rebuilding that sense of stability took time. I learned the importance of seeking support, whether through professional counseling or leaning on friends and family. This experience highlighted the resilience of the human spirit and the power of community in times of crisis.
Nobody hates to think about the inconceivable, yet the truth is that unexpected occurrences occur. We must be ready to defend our possessions and, frankly, our sanity. Getting through a calamity requires a great deal of patience and time. Align yourself with resources early on so that you may get back on your feet and restore normality in due course.
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