Does Homeowners Insurance Cover Theft and What to Expect

Homeowners insurance typically covers theft, but it's essential to understand what's covered and what's not. Most policies cover theft of personal property, but some may have limits on specific items like jewelry or electronics.

If you're a victim of theft, you'll need to file a police report and provide proof to your insurance company. This documentation is crucial in processing your claim.

Theft coverage usually includes items like bicycles, tools, and other valuables, but it's always best to review your policy to confirm what's included.

People listed under your policy, such as a spouse, child, or anyone else you identify, will have their personal possessions covered against theft.

This coverage extends to people living in different residences, so if your child is away at college, their electronics or belongings will be protected if stolen from their dorm room.

You'll need to talk to an agent for specifics, but generally, once your child moves into their own home, they will no longer be protected by your home insurance.

Your home insurance policy can cover a lot, but it's essential to know what's included and what's not. People listed on your policy, including family members or roommates, are protected from theft even if they live in a different residence.

If your child is away at college, their electronics or belongings are covered if stolen from their dorm room. However, once they move into their own home, they'll no longer be protected by your home insurance.

There are some exceptions to what your homeowners policy covers. Cash and jewelry are two examples of items that have limited reimbursement amounts due to their high replacement cost.

If your car is stolen, your homeowners policy won't cover the cost. You'll need to have comprehensive insurance through an auto policy for that coverage.

Your personal property coverage limit is set at 50% to 70% of your dwelling coverage, so if your dwelling coverage limit is $100,000, your personal property coverage limit may be $50,000 to $70,000.

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This means that if you have a valuable item worth more than this limit, you may not be fully covered in the event of theft.

Standard policies also have sublimits for high-value items like jewelry, fine art, and collectibles, which can be as low as $1,000 for jewelry.

These sublimits can leave you underinsured if you have expensive items that exceed the policy's limits.

If you have items with values that exceed your policy's sublimits, consider adding scheduled personal property coverage to your policy.

Here are some examples of high-value items that may have lower coverage limits:

Your policy may also have different coverage limits for items stolen at home versus away from home, with a limit of 10% of the personal property coverage limit for items stolen outside the home.

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Homeowners insurance can provide protection and replacement for stolen items, but there are limits to consider.

A standard homeowners policy typically has a limit of around $200 for reimbursing missing money and jewelry. If you have high-value items worth $5,000 or more, you may want to consider a "personal floater" policy to get additional coverage.

Actual cash value (ACV) coverage pays the used value of belongings, taking into account depreciation. This means if your five-year-old 60-inch television was stolen and you bought it for $1,000, the ACV might be less than that due to depreciation.

Replacement cost value (RCV) coverage pays the current price of a brand-new, similar item, without considering age or wear and tear. This can be added to your primary homeowners policy for an additional premium.

If you have a break-in, dwelling coverage will help pay for any structural damage sustained, such as repairing or replacing broken doors or windows.

Personal property coverage helps replace stolen possessions and fix damaged items, but may have sub-limits for certain highly valuable items. If you want more coverage on items like computers or home office equipment, you might find increased limits with some providers.

Jewelry, such as watches and rings, may be covered up to your policy's limits, minus your deductible. If your policy limit is $2,000 for all stolen jewelry, it may help pay up to $2,000 for replacements.

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Filing a claim for theft can be a straightforward process if you're prepared.

To initiate the claims process, you'll need to contact your insurance company as soon as possible, providing them with a copy of the police report and detailed information about the stolen items. Your insurance company may assign a claims adjuster to guide you through the process.

Having a good home inventory can make this process much easier, as it will help you quickly assess the total value of everything lost. It's essential to keep this inventory up-to-date, including photos and receipts for your belongings.

If your claim is approved, you'll receive your payout, minus your deductible. If you have RCV (Replacement Cost Value) coverage, your company may initially pay out the ACV (Actual Cash Value), then pay the difference after you've replaced the item and submitted a receipt.

Here's a quick rundown of the steps to file a claim:

Filing a claim after a theft can be a complex process, but it's essential to act quickly to minimize losses.

First, file a police report and obtain a copy for your records. This is a crucial step, as insurance companies will deny theft claims without a police report to prevent fraud.

Take photos of the damage and make a list of stolen items, including as much detail as possible, such as the make and model of electronics or the estimated value of jewelry. A home inventory can make this process easier.

Contact your insurance company as soon as possible, and provide them with a copy of the police report, receipts for stolen items, and other relevant information needed to process your claim.

Your insurance company may assign a claims adjuster to guide you through the process, who will determine how much coverage you’re entitled to and help get your claim processed as quickly as possible.

Here's a checklist of what you'll need to provide to your insurance company:

Be prepared to respond to any questions your insurance company has to keep the process running smoothly.

Most standard policies set your personal property coverage limit at 50% to 70% of your dwelling coverage, so if your dwelling coverage limit is $100,000, your personal property coverage limit may be $50,000 to $70,000.

Your policy may have additional sublimits for high-value items, such as jewelry, trailers, china, watercrafts, and furs, which are typically set at several thousands of dollars.

You'll need to reach your deductible before your home insurance provider starts to pay out for stolen personal property.

Your policy may limit how much they'll pay for stolen property, especially if it's stolen outside the home or in your car.

If you're wondering who's protected from theft under your home insurance policy, the answer is people listed under your policy, such as a spouse, child, or anyone else you identify on the policy. This coverage extends to people living in different residences.

Your child's electronics or belongings will be covered against theft even if they're away at college, but once they move into their own home, they'll no longer be protected by your home insurance.

Taking measures to make your home "theft-proof" can net you savings in the form of homeowners insurance discounts. Many home insurance companies give discounts of 2% to 15% off the cost of premiums when you burglar-proof your home.

Installing a burglar alarm connected to the local police can earn you a discount on your homeowners insurance, potentially saving you up to 15% on your premiums.

Homeowners insurance companies often give discounts to those who take measures to make their home "theft-proof", which can include installing motion lights around the perimeter of your home.

To qualify for discounts, you'll want to use deadbolt locks on your doors that meet the "Grade 1" standards set by the American National Standards Institute (ANSI).

You can also earn a discount by installing burglar alarms connected to local police, which can provide an added layer of security for your home.

While these measures may require an upfront investment, they could pay off in the long run with the potential for significant savings on your homeowners insurance premiums.

Here are some specific measures you can take to earn discounts:

If your home is burglarized, your standard homeowners insurance policy can help with more than just replacing stolen items. Dwelling coverage can pay for repairs if a burglar damages your home, such as by smashing a window or kicking in a door.

You may also have other structures on your property, like a fence or a garden shed, that need repairs after a break-in. Other structures coverage can help with that.

Loss of use coverage can be a lifesaver if your home is damaged to the point where it's temporarily unlivable. This type of coverage can help pay for a hotel or rental so you can stay somewhere else while your home is being fixed.

Here are some examples of other types of coverage that may be included in your homeowners policy:

Optional coverages can be a lifesaver if you have high-value belongings or specialized vehicles. These add-ons can provide extra protection and support when you need it most.

Itemized personal property coverage is a must-have if you have expensive items like jewelry, art, or collectibles. This coverage can help you recover the full value of your belongings in case of theft or loss.

Diminishing Deductible coverage is another smart choice, as it can help reduce your home insurance deductible over time. This means you'll have more money available to support your claims when you need it.

If you have a snowmobile, ATV, or motorcycle, consider adding vehicle coverages to your policy. These specialized theft protections can give you peace of mind and financial security.

You may also want to consider identity protection, which can help cover expenses related to identity restoration. This is especially important in today's digital age, where identity theft is a growing concern.

Here are some optional coverages to consider: