Dealing with property damage
Vehicle damage, payments, and insurance
If your vehicle is damaged, you should clarify with both your insurance company and auto loan lender what type of insurance policy you have, what losses the insurance covers, and what you may owe. If the cost of repairs is more than the value of the car, the insurance company may declare the vehicle a total loss and pay you the fair market value of the vehicle on the date of the damage. If the amount you owe on your auto loan is more than the insurance paid on your totaled car, you may owe the difference to the lender. If you’ve purchased guaranteed auto protection (GAP) insurance, you should check to see if it will cover the difference.
Renters insurance covers your belongings if they’ve been damaged inside a home that you rent. Your landlord is not responsible for damage to your personal property inside the housing unit. Review your policy to make sure you understand what property is covered, and whether you can file a claim for the situation you are in. Sometimes renter’s insurance also covers the cost of living somewhere else if you can’t live in your home. Check your policy to see if it includes this option.