keisha is renting a one-bedroom apartment but allows her best friend to move in and pay $200 per month to sleep on the couch for the summer while she is between jobs. the apartment is burglarized one afternoon when they are both out, and the thief steals both of their laptops, keisha’s tv, and her best friend’s wireless headphones. what will the insurance company cover?
What will the insurance company cover in this situation?
Answer:
In this scenario, the insurance coverage will depend on the type of insurance policies Keisha and her best friend have.
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Renter’s Insurance Coverage:
- If Keisha has renter’s insurance, it typically covers personal property loss due to theft, vandalism, or other covered perils. Therefore, the stolen laptops, Keisha’s TV, and her best friend’s wireless headphones may be covered under Keisha’s renter’s insurance policy.
- Renter’s insurance usually covers personal belongings even if they are stolen outside of the insured property. So, as long as the items stolen are within the coverage limits, Keisha can file a claim for the stolen items.
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Possessions of the Best Friend:
- The insurance coverage for Keisha’s best friend’s possessions (like the wireless headphones) will depend on whether the best friend has their renter’s insurance policy. If the best friend has renter’s insurance, they may file a claim for the stolen headphones under their policy.
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Policy Limits and Deductibles:
- It is essential to consider the policy limits and deductibles of the insurance policies when determining the amount of coverage. The insurance company will only cover losses up to the policy limit, and the deductible amount will be subtracted from the total claim amount.
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Filing a Claim:
- Keisha and her best friend should immediately contact their insurance companies to report the theft and file a claim. They may need to provide details of the stolen items, evidence of ownership, police reports (if required), and any other documents requested by the insurance company.
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Exceptions:
- It’s crucial to review the insurance policy documents to understand any exceptions or limitations to coverage. Some high-value items like jewelry, art, or collectibles may have sub-limits or require additional coverage.
In conclusion, the insurance company is likely to cover the stolen laptops, TV, and potentially the wireless headphones under Keisha’s renter’s insurance policy, provided she has one. Keisha’s best friend’s belongings will be covered under their renter’s insurance policy, if applicable. It’s essential for both parties to review their policies, understand the coverage, and follow the necessary steps to file a claim for the stolen items.