When Homeowners Insurance Covers Theft
According to the Federal Bureau of Investigation (FBI), 18 percent of property crimes are burglaries. Luckily, standard homeowners insurance covers theft from inside and outside your home. It also covers items that you take with you when traveling.
That means home insurance can help replace stolen items if they were taken from your house or a hotel room.
Dwelling Theft Protection
The FBI reports that nearly 60 percent of burglaries involve forcible entry. If a thief breaks a door or window during a theft, will you be covered?
In most cases, your homeowners insurance will pay to repair or replace the parts of your home that are damaged during theft or attempted theft. Your dwelling coverage, also known as Coverage A, covers this type of damage.
Your home insurance covers additional structures under Coverage B in your policy. Other structures coverage can include detached structures, such as garages, sheds, and fences. If a thief damages those structures during a break-in, your policy can pay to repair or replace them.
Personal Property Replacement
If a thief steals your belongings, one of your first questions is: does home insurance cover theft of the item? Yes, a standard policy typically covers theft of appliances, furniture, clothing, sports equipment, and other personal property.
It’s under your policy’s personal property coverage, or Coverage C. Here’s when personal property coverage can kick in:
Theft from inside your home or on your property: If a thief steals items from your house or property, personal property coverage can pay to replace the items.
The stolen article belongs to a guest: Your homeowners insurance may cover a nonresident’s stolen personal property if the theft was from your house.
A theft away from home: Your policy can help replace stolen luggage or other items while you’re away from home.
Your child’s dorm room had a break-in: Coverage can include theft of items from a dependent’s dorm room. They may not be protected if they live in off-campus housing, so ask your insurance agent for clarification if you’re not sure.
Items were taken from your car: Homeowners insurance generally covers the theft of personal items from your car. It will not cover the theft of your actual vehicle.
There are some limitations to how much your home insurance company will cover. Your policy has a personal property coverage limit.
If you own high-value items, your policy may not be enough to cover them. Jewelry is a common example. Review your policy to determine if your coverage limit is high enough to replace the pieces that mean the most.
You can purchase an endorsement or additional coverage for more expensive items. This is an important consideration if you own expensive jewelry, art, or other valuables.