If you’re wondering if your homeowners insurance can cover theft and break-ins, you’re not alone. Many other people wonder the same because the truth is, even though nobody wants to experience theft in their home, it’s a risk we can all expect.
You are right to ask if homeowners insurance covers theft because you’ll be sure that your home and properties are protected.
So, if you’re the victim of theft at home, whether inside your home or outside, your homeowners insurance coverage may replace your stolen possessions. Your policy may also help you cover the cost of repairs to any property damage caused by theft or burglary.
When Does Homeowners Insurance Cover Theft?
In general, homeowners insurance coverage protects your home against losses and damages and offers coverage to your home’s property and assets. There are basically four facets of coverage in homeowners insurance:
One of the key coverage that you get from homeowners insurance is personal property insurance or personal belongings coverage. It covers your personal belongings, such as:
It covers your personal belongings whether they are damaged in your house, apartment, or wherever you are in the world.
If your property or personal belongings are stolen inside or outside your home, the homeowners insurance will help you replace them. Whether you’re pick-pocketed while walking in the street, or someone breaks into your garage and takes your property, your homeowners insurance policy will compensate you.
It is important, however, that you distinguish whether your policy covers the Actual Cash Value (ACV) or the Replacement Cost Value (RCV)]. If your policy declares ACV, it means your homeowners insurance will reimburse you for the amount your stolen (or damaged) item is currently worth. On the other hand, RCV will reimburse you for the cost of replacing the exact same product in the current market.
What Items Are Covered Under Theft In Homeowners Insurance?
Typically, all the items covered under your personal belongings in your homeowners insurance policy are covered under theft. The items covered under personal belongings include:
- Lawn care equipment
- Gym equipment
The loss settlement of these items will depend on your type of policy coverage.
Additionally, your homeowners insurance may provide coverage for exterior trees, plants, and shrubs from theft under your homeowners policy. Your homeowners insurance may also cover your personal belongings that you store off-site, such as large furniture you keep in a rented storage facility.
Who Is Protected From Theft Under My Home Insurance Policy?
When you buy a home insurance policy, you will list people you’d like to be covered. This can include your spouse and children and anyone else identified as covered on the policy. It may also extend to people living in other different residences.
All these people listed under your policy will have their personal belongings covered against theft in your homeowners insurance.
For example, even when your son, who is in college and lives on campus, encounters theft of electronics or other belongings in their dorm room, the homeowners insurance will still provide coverage for him. But once the child moves to his own home, away from campus housing, he will not benefit from protection by your homeowners insurance policy.
Does Homeowners Insurance Cover Break-Ins?
Losses from break-ins are categorized into two, and home insurance policies cover both.
- Loss of possessions, including such items as laptops and TVs
- Damage to the house’s physical structure or detached buildings
Homeowners insurance covers loss of possessions from break-ins as other losses from ordinary theft. However, damage to the house’s physical structure or a detached part of it is dependent on the type of policy you buy.
In damage to the physical structure of your house, a burglar might pry off, kick in, or otherwise damage the locks, doors, windows, and other areas in your home. Some burglars even target copper pipes, which they resell in the metals market. If you encounter these kinds of burglars, you may be able to claim them in your policy if you listed them.
Does Homeowners Insurance Cover Car Theft?
Homeowners policy does not provide coverage for theft of motor vehicles. Your comprehensive coverage, if you have one, will cover car theft.
Your homeowners insurance covers most things that can be stolen but have a few caveats and exceptions. Some things such as cars and jewelry cost much more. That can be an above-average amount of money to replace using homeowners insurance. This is why standard homeowners insurance policies limit the total amounts they can reimburse if these particular items are stolen.
However, the homeowners insurance may come in handy if your possessions have been stolen from your car. This coverage applies if the stolen possessions are not permanently attached in the car. If the possessions are permanently installed in the car, such as audio systems, that will require a comprehensive car insurance policy to help you repossess them.
Does Insurance Deductible Apply To Homeowners Insurance Cover For Theft?
When you’re buying an insurance policy, you’ll often pay an insurance deductible. It is the amount you agree to pay out of pocket before the claim is processed.
Your homeowners insurance deductible will apply to any covered loss. As in other insurance policies, your claim payments will not be made until you meet the deductible.
Are there Homeowners Insurance Discounts for A Theft-Proof Home?
You will get insurance discounts called homeowners insurance discounts if you take steps that help to make your home theft-proof and protect your home from break-ins.
A few things that you can use to increase the security of your home include:
- Using deadbolt locks on your doors, which are ranked “Grade 1” in protection
- Installing smart home devices, for instance, burglar alarms and cameras connecting them to local police to monitor and secure your home
- Installing burglar alarms around your home connected to local police
Note: Taking extra steps to keep your home secure will not just lower your homeowners insurance premiums. You will also get greater peace of mind knowing your home – family and your belongings – are safe and fully protected
How Do I File A Homeowners Insurance Claim?
No one expects a burglary or theft of property, but that is also why you need home insurance. So, you always need to have a clear inventory of your home and belongings. A video is a good idea because it will capture everything the insurer may need during the claims process.
If you encounter a theft, burglary, or break-in, you need to act quickly. First of all, make sure that your family is safe and secure. The next thing is to contact the police to report the incident. Finally, you can file for an insurance claim with your insurance company. You’ll provide your insurer with a copy of the police report and detailed information about the theft and any damage.
Home insurance is a worthwhile venture in the unfortunate event you encounter theft within your property. If you want to make a claim on your homeowners insurance, you should have enough records to make your claim process easy. It is also important that you talk to your insurance agent and understand what’s covered before making any claim.