Does Renters Insurance Cover Theft?

Robbery reports have increased in the last few years, according to the Federal Bureau of Investigation.^[1] Even if you’re careful, theft can happen at any time. Renters insurance protects the value of your belongings, up to a certain limit, both inside and outside the home. So if your home is burglarized or your laptop is stolen from a coffee shop, you may be able to get reimbursed.^[2]

Here’s what you need to know about this affordable add-on coverage.

When renters insurance covers theft

Renters insurance covers theft when it affects your personal property, including electronic items, musical instruments, furniture, jewelry, and clothing.

Policies include three types of coverage: personal property damage, liability claims, and loss of use. The personal property coverage usually covers your stolen items.^[3]

Here are some common scenarios when a renters insurance policy will cover stolen items.

Theft from your rental

Rental insurance covers theft from inside your home. Your coverage limit, deductible, and policy details determine how much the insurance company pays versus how much you’re responsible to cover.

For example, let’s say a thief breaks in through a locked window and steals your laptop and television. The items are worth $2,000. You have a coverage limit of $10,000 with a $500 deductible. You’re responsible for paying the $500 deductible, and your renters insurance covers the remaining $1,500.

Theft from your yard

Renters insurance covers theft from your yard or outdoor space, including balconies. Your insurance covers items that stay outside permanently, like a grill. Your personal belongings are also protected when taken outside your home.

For example, imagine you’re on the subway, and a thief steals your laptop from your backpack. You can use renters insurance to file a claim.

Bike theft

Renters insurance covers bike theft, regardless of whether it occurs at home or in a public space. Some policies might include a bicycle sublimit, affecting how much the insurer will pay when you file a claim.

For example, imagine you ride your bike to work and lock it up outside the building. When you leave work for the day, your bike’s stolen. The bike is worth $3,000. You file a claim with your insurance company. The policy has a $1,500 sublimit for bicycles, which means the insurer will pay up to $1,500 for the claim, but you’re responsible for the rest.

Car theft

Renters insurance doesn’t cover car theft. If someone steals your car or damages it while stealing items, you must file a claim through your car insurance policy.

But you can use your renters insurance policy to file a claim if someone steals items from inside your car. For example, let’s say you put your laptop in the trunk of your vehicle and someone steals it while you’re in the grocery store. You can file a claim to replace it through your renters policy.

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When renters insurance doesn’t cover theft

Even though renters insurance policies are robust, they don’t cover every scenario. Your policy won’t pay for theft in the following situations:

• 

  Theft due to negligence

  If your negligence affects whether someone can steal an item, your insurer might deny the claim. Common examples include leaving keys in the car or forgetting to lock your bike.

• 

  Lost luggage at the airport

  Renters insurance doesn’t cover lost luggage when you’re flying. Your policy won’t pay for a claim because the airline is responsible for the items.

• 

  Your home is under construction

  Construction can make it easier for a thief to steal items from your home, and insurers can deny claims that occur during home repairs.

What amount does renters insurance cover for stolen items?

The type of renters insurance policy you have, including the policy limits, determines the amount of coverage. Policies have a limit, typically between $10,000 and $100,000, which is the maximum amount the insurer will pay when you file a claim.

Actual cash value

Some policies provide only the actual cash value for stolen items, which is the current worth of the item — whether you bought it recently or years ago.

For example, let’s say you bought a laptop for $1,000 four years ago, but it’s currently worth $600, which is the actual cash value. The same laptop would cost $1,500 if you bought it today, but that doesn’t affect the claim since your policy covers the actual cash value. So you’ll only get $600 back (minus any applicable deductibles).

Replacement cost value

The replacement cost value is how much it costs to replace the item today. For example, let’s imagine a thief steals the same laptop. You bought it four years ago for $1,000, but the same model costs $1,500 today. Because the policy covers the replacement cost, you’d get up to $1,500 for the claim.

Do you need additional coverage for high-value items?

You might need additional coverage for high-value items worth more than $1,500. Most renters insurance policies have sublimits for expensive items, like jewelry and bicycles. The sublimits are less than your policy limit and only apply to specific items.

For example, imagine you have a piece of heirloom jewelry from your grandmother. It’s worth $10,000, but your policy’s sublimit for jewelry is $1,500. Your insurer will only pay the sublimit if the jewelry is stolen.

For added protection on high-value items, consider purchasing a rider from your insurance company or buying a supplemental insurance policy from another company.

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How to file a renters insurance claim for theft

Realizing you’re a victim of theft can be stressful. But the good news is that the renters insurance claims process is straightforward.

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  1. File a police report

  The first step is to file a police report. Call the police and ask how to file a report in your area. You’ll need to explain what happened and when.

• 

  2. Document the evidence

  Take photos of any damage, including broken windows or locks. You can also take pictures of the item’s last location. Make a list of missing items and provide purchase receipts, if possible.

• 

  3. File an insurance claim

  Complete the claims process with your insurance company. You can call a representative or start the claim online.

Ways to protect your rental from theft

You can’t always prevent theft, but you can take steps to protect your personal property when you’re a renter. Here’s how.

• Always lock the door. Lock doors leading outside, whether you’re at home or out. Consider an additional security bar or deadbolt for exterior doors.

• Install a security camera or system. Security systems and cameras can deter thieves from targeting your home for theft. As a bonus, your insurer might also offer a discount for having them.

• Don’t leave spare keys outside. It’s a good idea to leave a spare key with a trusted friend, family member, or neighbor. But leaving spare keys under front door mats or plants can make it easier for thieves to break in.

• Stay aware. If you’re out in public, stay mindful of your surroundings. Keep personal items in a secure bag with a zipper. And don’t leave items, like a laptop, unattended.

• Don’t leave items in plain sight. When you leave your car or home, make sure expensive items are always hidden from view.

Renters insurance and theft FAQs