Does Homeowners Insurance Cover Theft?

If you come home and find your belongings stolen or vandalized, your first step should be to contact the authorities and file a police report. Your next step will likely be to file a claim with your home insurance company. Home insurance often covers theft, but before you call your insurance agent and begin the claim process, there are a few things to keep in mind. Bankrate’s insurance editorial team has done some research to help you understand the details of home insurance coverage related to theft and burglary.

Does home insurance cover theft?

Most homeowners insurance policies cover theft. If you have an HO-3 policy, the most common type of homeowners insurance, you have theft insurance. Theft is one of the named perils included in the standard coverage. However, most homeowners insurance policies have vacancy clauses that void theft coverage. If your property has been vacant for more than 60 consecutive days, you may not be able to file a theft claim.

In an insurance policy, vacant and unoccupied premises have two different meanings. A vacant premises is a house that has no furniture or people living in it, whereas a deserted premises is a house that no one lives in. For example, if you go on holiday, your house will be considered unoccupied as all of your furniture and personal belongings will remain there.

Coverage for theft of personal belongings from your home

If your personal belongings are stolen from your home, you can file a claim for property loss. Personal possessions are covered under coverage C of your home insurance, which is usually 50-70 percent of your total home limit. So if your home limit is $300,000, your personal possessions insurance would likely be in the range of $150,000 to $210,000. This also applies to valuables, but only up to your policy limits and sublimits.

Compensation for damages caused by theft

Burglars may break windows, smash doors, or break locks to get into your home. Damage to the physical structure of your home is usually covered under Home Insurance Coverage A. You can check your Home Insurance coverage on the Insurance Declaration page.

Coverage for theft from detached houses

As with your home, any detached buildings on your property are financially protected against theft. Any other buildings on your property, such as a shed or detached garage, are covered under Coverage B up to 10 percent of your total home limit. This includes damage to the building itself, but belongings stored in the detached buildings are covered under the personal property portion of your policy.

Coverage for off-premises theft of personal property

Home insurance also protects you from theft outside your home, such as when you’re away from home or traveling. In most cases, personal possessions outside the home are covered up to 10 percent of your Coverage C limit or $1,000, whichever is greater.

How to file a home insurance claim for theft

If you are the victim of theft and the damages exceed your deductible, you should file a home insurance claim. This will allow your insurance company to investigate the loss and potentially pay you for the damages. You can file a claim by following these steps:

1. Assess and document the damage. If your home or car has been broken into, determine the damage. Car damage should be covered by your full auto insurance, while home damage and stolen items (from your home or car) should be covered by your home insurance. You don’t need to calculate the exact amount of damage to your car or home and stolen items, but you should make sure the damage exceeds your deductible before filing a claim. It can also be helpful to obtain a police report and take photos.
2. Please contact your insurance company. Many companies offer a mobile app that allows you to submit a claim or access an online customer portal. To start the claims process, you will need to call an 800 number or speak to a local agent. You will need information about the date the loss occurred, details of the event, and the damages incurred.
3. Work with your billing representative. Your case will likely be handled by an insurance claims officer, but in some cases, you may work with an entire team of insurance claims officers. These insurance officers are called adjusters. Stay in touch with your adjusters by email, phone, text, or mail. You may need to provide documentation proving you own the stolen items and their value.
4. Receive payment. If your claim is approved, you will likely receive a check in the mail for the agreed upon amount of damages. For personally owned property, the check will likely be issued in your name only, unless the property is jointly owned. However, if your home or car was damaged, the check may also have the name of the mortgage or finance company on it, and you will need to negotiate with that institution to cash the check. Typically, the financial institution must endorse the claim check before it can be cashed.

Do you need extra coverage for expensive possessions?

Generally, yes, expensive or high-value items require supplemental coverage. If you have expensive, luxury, collectible, or antique items, you may want to consider regular personal property coverage.

Special coverage limits may apply for valuable items that are prone to theft. Even if your personal possessions coverage is $210,000, your jewelry and watches may only be covered to the tune of $1,500. Booking insurance may require an appraisal of your items, but once that has been done, your insurance may cover the full value of your items. Booking insurance has the advantage that it may broaden the scope of events covered and often includes replacement in the event of loss. It also usually has the advantage of having no deductible.

Actual Cash Value and Replacement Value Insurance

If something is stolen, your insurance should cover you, but the amount your belongings are covered for will depend in part on whether you have actual cash value or replacement value insurance. Actual cash value insurance takes depreciation into account, while replacement value insurance pays the cost of purchasing an item of the same or similar quality at its current price.

As you might imagine, replacement value insurance is generally more expensive than actual cash value insurance, but it can leave you in a much better financial position after a home invasion.

How do you know if your homeowners insurance is worth the right amount?

The amount of home insurance you need will depend on the value of your home and property, the risks you face, and the amount of coverage you’re comfortable with. Generally, the more money you have available to spend on replacing your possessions, the more insurance you should consider purchasing.

Another way to know if you have the right amount of coverage is to take a home inventory and evaluate whether you need to increase your coverage limits. A home inventory is a list of all the items you own. Homeowners who take the time to make a detailed inventory often have a more accurate idea of ​​how much coverage they need and can be better prepared when they need to make a claim. If you think you need more coverage, you can contact an insurance professional and ask about increasing your personal property limits. You can also consider whether to insure your possessions at their actual cash value or replacement value.

How to prevent theft from your home

Most people would agree that it’s better to avoid being a victim of theft than to have to deal with the consequences of it all. With that in mind, here are some suggestions to help make your home less attractive to thieves and have the peace of mind of knowing your family and belongings are safe.

• Install deadbolt locks on all doors and reinforce window locks.
• Install security devices such as motion sensor lights and burglar alarms.
• Ask your local police department if they would be willing to perform a security audit of your home, and address as many of their suggestions as you can.
• Keep bushes in front of your windows trimmed to prevent someone from hiding behind them while you pry your lock, and planting thorny bushes under your windows may help deter burglars.
• Valuables such as important documents, money and expensive collections should be kept out of sight and, if possible, in a locked safe.
• Do not leave ladders or tools visible outside.
• Don’t talk about your vacation plans in public or post about them on social media ahead of time, and ask police and neighbors to keep an eye on your property while you’re away.
• Make sure garage and shed doors and windows have locks.
• If you have a pet door, be sure to lock it when not in use.

You may be able to get a discount on your home insurance if you install safety devices that reduce the risk of your home being broken into. These devices include:

• Deadbolt Lockwhich makes breaking into your home more difficult.
• Local AlarmAn alarm sounded in a dwelling to scare off intruders.
• Central AlarmA bell will ring at the residence, automatically alerting authorities to the situation.

Additionally, if you live in a gated community or one that has a security guard at the entrance, you may be able to get a discount on your home insurance.

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