Covering Stolen Cash

Does renters insurance cover stolen cash?

Renters insurance companies commonly reimburse you for any damaged or lost personal property in the case of natural disasters, theft or vandalism. Items included in personal property coverage could be anything such as TVs, antiques, furniture, clothing or even everyday belongings. It can also include liability coverage, in the event of injuries on your property leading to medical and legal expenses.

If your property becomes uninhabitable, that’s when loss-of-use coverage becomes relevant. Loss-of-use coverage help pay for you to reside elsewhere whilst your property is damaged.

When do renters insurance cover cash?

Although theft is considered a covered liability, renters insurance will only cover a certain amount of stolen property, depending on your policy limit. A majority of policies will only cover lower limits, also known as sub-limit. Meaning, items such as jewellery, cash or electronics are usually covered for a lesser amount. Cash has an even lower sub-limit, as you can’t keep an inventory like you would with other tangible items.

Luckily, insurance will usually cover your belongings and cash, whether they’ve been damaged/lost on or off your property. That could result in a lower reimbursement though.

Filing a claim for just stolen cash never commonly required you to pay a deductible. However, if cash was stolen as well as other items, you will then have to pay your deductible file the claim.

How much stolen cash will renters insurance cover?

Generally, insurance policies will cover up to $200 in stolen cash. Even if $500 in cash was stolen from you, your insurance company will most likely only cover $200; This includes other currencies.
The following forms of currency can be covered depending on your policy:
– Cash
– Bank Notes
– Gold
– Silver
– Platinum
– Coins
– Medals
– Smart Cards

Why does renters insurance only cover a limited amount of stolen cash?

The reason renters insurance only covers a limited amount of stolen cash is due to the fact that your cash balance can change by daily. Additionally, an item such as cash is difficult to keep an inventory on as it’s harder to obtain proof of the theft.

Some reasons why cash has a separate sub-limit from other personal property:
– Moral Hazard: The reason why cash coverage is considered a moral hazard is that there is always a chance of a false claim.
– Documentation: As mentioned before, it’s a lot easier to document ownership of personal tangible items as opposed to cash, where you can’t keep an inventory of. This is due to the fact that cash is constantly changing, making it more difficult to lodge a theft claim.

Plan a thorough budget with Moneysmart to understand your spending habits and how much you can afford for your monthly payments.

How do I file a renters insurance claim for stolen cash?

Upon theft, you should immediately contact the police and file a report. This will get you to not only recall what happened but also forms documentation that would act as evidence when lodging your claim. If the theft occurred within your property, along with calling the police, your landlord should be contacted. This would help with securing any hazardous damage done, keeping your property habitable. Regardless of the situation, you must always document the loss such as taking photos of broken windows or doors. This documentation will strengthen your theft claim and fade the idea of a possible false claim.

Lodging a claim should always take place within 24-72 hours after the incident, as you’d need to fill out claims forms for your insurance provider. Generally, you’d need:
– Your policy number
– Incident details
– Official report (police report documenting the incident)
– Personal contact details

Similar to other incidents, upon filling out your claim forms, your insurance provider will assign an adjuster to conduct their own investigation.

Safer options than cash

Carrying large amounts of cash around can get risky. Instead, you’re better off depositing that cash into your bank accounts, because in case of a theft, you can easily cancel your bank cards within seconds.

If you did need cash for any reason, printing off a bank receipt upon taking cash out can be your evidence documenting that you took cash from a certain location and time.

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