Does Renter’s Insurance Really Work? YES!

As MFA is a site dedicated to apartment rentals, we endorse renter’s insurance because: 1) It seems like a smart idea to insure your stuff against the unthinkable and 2) It’s SUPER inexpensive for the value it brings (Alex and I have been paying around $150/year for up to $20,000 of coverage).

In this post, I won’t argue the merits of renter’s insurance again. Like most types of insurance, it’s to protect against the odds. For more information, please check out our previous post here.

Nope, in this post, I’ll be reviewing how well our renter’s insurance with State Farm worked when our apartment was burglarized. Here, based on the likely order of your questions are the answers:

So, did they pay up? Yes. Mostly. Renter’s Insurance is an interesting form of insurance as it often involves paying plan holders cash. And, therein lies the possibility for fraud (few people may try to rip off their health insurance for another doctor’s visit). As a result, the industry has decided, no doubt aided by their number-crunching analysts, to cover, in most cases,  the estimated value of your purchases. This means that if it costs $300 to re-buy a purse, but that your purse (had it not been stolen) is now only valued at $100, you’ll get $100. Only when you send them the receipt showing that you’ve rebought the purse will you gain the full $300 value. So, while they honored our claims, there’s around 2K left on the table should/when we submit our full value receipts.

It’s time-consuming and a bit frustrating, but I can understand why they do it. Happily, you do not need to submit your receipts for every item lost – though it can get you a higher value in terms of reimbursement.  An alternative is that State Farm was able to find about 10 electronic items we lost and did offer to purchase them for us directly.

How fast did we get our items back? The process took slightly over a month. Luckily, we had savings to re-buy our most important items (e.g. my computer, Alex’s computer mouse) before getting reimbursed. That said, purchasing before you see the insurance payout means the risk of paying more for items than the insurance covers. Why? Because if they can buy it cheaper, that’s all they will cover. So, it’s not a perfect system, especially for those without savings. But, it certainly didn’t take 6 months to get our $ either.  We also kept finding items that were taken after we submitted our initial claim, so we need to re-submit.

Were there any surprises? Yes – though not necessarily State Farm’s fault. In our policy, as in most policies, there are limits to the amount claimed per category of loss. For instance:  jewelry, electronics, furs, etc. Alex bought our policy and didn’t think to tell me the jewelry limit – assuming we would be under. Well, unfortunately, because we got robbed right after our wedding, I had some family jewelry at home that was taken. So, we were about 2K over  – that we’re now paying ourselves.

Overall, I had a pretty good experience with State Farm. I found them to be a touch disorganized but, on the whole, a good company to work with for Renter’s Insurance.

Have you had to put a claim in on your Renter’s Insurance? If so, how did it turn out? Share below!

Author My First Apartment

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I've lived in apartments in 6 cities (including 2 foreign countries). Does that make me an expert? As of now, my ceiling isn't leaking and I don't have rodents (knock on wood) -- so I'm going to say yes . . . but ask me again tomorrow:) These days, I'm enjoying life Chicago style, but my years in Brooklyn are never far from my mind. P.S. By day I work at, but these opinions are totally, 100% my own.

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Comments (1)

  1. Renters Insurance Network

    Hi Alissa, we came across your post on utilizing your renters insurance coverage and are glad you are getting some use out of it! We were curious as to whether you also drive a car and carry an auto insurance policy with State Farm as well? The only reason we ask is that by bundling 2 or more policies with the same insurer often provides an additional savings of 15-20% and while I’m not sure of the exact discount State Farm offers we thought we’d ask.