Insurance companies generally define theft the same as everyone else (i.e., someone takes property that doesn’t belong to them). Several types of policies, including homeowners insurance policies, cover losses from theft and attempted theft. In insurance-speak, that means theft is a covered peril on those policies.
Theft insurance is simply coverage for when someone steals your property. However, most people don’t need a separate theft insurance policy because the coverage appears in their home insurance in a variety of ways, namely:
Having your property stolen can be a traumatic experience. But the theft insurance in your homeowners policy can be a big help in getting things back to normal.
If someone breaks into your home, your homeowners policy typically covers your stolen items as well as any damage the thief caused. One cool feature in homeowners insurance is that most policies even cover these losses when they occur away from your home. This means that if someone steals from your hotel room while you are on vacation, your insurance company most likely covers that loss up to your policy limits.
However, home insurance policies don’t necessarily cover the entirety of your losses. How much you recover in a claim is usually impacted by your:
Sublimits are common for items like computers, jewelry, fine art, and collectibles. You can protect these items with a scheduled personal property endorsement.
Not all theft scenarios are covered. For example, home insurance policies typically exclude theft if the items were stolen:
As for the first exclusion, insurance companies simply don’t cover an insured’s illegal actions. But the other two are about increased risk. For example, more people come in and out of a home when it’s under construction, so there’s a greater chance for something to be stolen.
The same is true when you rent the home out. Even if you believe you know your tenants very well, their presence (and their guests, for that matter) increases your risk for theft. You could protect yourself with landlord insurance, but another option is our versatile House & Property policy.
You should also note that homeowners insurance seldom covers stolen cash﹘mainly because it’s difficult to prove the loss.