Protect This House! Does Home Insurance Cover Theft?

September 16, 2019

Did you know that the most common time for home theft is in the middle of the day? Nighttime burglaries only account for 17% of all robberies.

Most people work during the day. Plus, it’s a lot less suspicious to find someone lingering around homes in the middle of the day than the middle of the night.

One-third of home thefts occur through “unlawful entry,” which is categorized as when a burglar accesses your home through an unlocked door or window. The remainder occurs as a result of “forcible entry.”

Theft can happen, no matter where you live. So the question is, “Does home insurance cover theft?”

It’s smart to be sure that you’re covered during a break-in. Keep reading to learn all about when home insurance covers theft.

Does Home Insurance Cover Theft?

No one wants to deal with the aftermath of property theft. And no one wants to face the feeling that a stranger entered their home and went through their things.

But on top of all that, the last thing anyone wants to deal with is not being able to afford to replace those stolen items. That’s where insurance comes in. But does home insurance cover theft?

The answer is, it depends. While most home insurance DOES cover theft, what they cover, and how much they cover, depends on the plan you have.

Personal Property Coverage Is Important

When you sign up for a home insurance policy, make absolutely sure that it includes personal property coverage. The personal property coverage is what will reimburse you for most of those stolen items.

From your tools to your computer, to the cash in your purse, personal property coverage will reimburse you for those stolen items.

Some plans, however, have stipulations on specialty items like jewelry or more expensive assets. Be sure to check what your plan covers and what those limits are.

Know the Value of Your Items

When you sign up for homeowner’s insurance, it’s essential to make sure that you are getting enough personal property protection.

It’s a good idea to add up the value of your possessions, so you have a better idea of what you’re working with when you sign up for a plan.

When it comes to cash, homeowner’s insurance will typically only cover up to $300 worth. So it’s a good idea to keep your money in a safe, fireproof place, especially if you have a lot of it.

It’s essential that you know that value of your items. For example, maybe you have jewelry that is worth $50,000, but your personal property coverage only covers up to $5,000. There are options you can add to your policy, like a “personal floater” policy, which will cover you for more.

Don’t Forget About Your Deductible

Pay attention to your deductible when you sign up for a homeowner’s insurance policy. Even when it comes to property theft, you’ll still have to pay your deductible before any reimbursements.

If you’re someone who does usually carry a few hundred in cash, you probably won’t ever get it back. If your deductible is $400, for example, and you had $300 stolen in cash, you’d have to cover the first $400 yourself, so there would be no point in making a claim.

Decide what’s best for you when it comes to a lower monthly payment with a higher deductible or a higher monthly payment with a lower deductible.

Dwelling Coverage Will Cover Theft Damage

Dwelling coverage is the portion of your homeowner’s insurance, which will cover any damage incurred by the thief.

For instance, if a burglar breaks your window, the window replacement will be covered under dwelling coverage while the stolen goods will be covered under the personal property coverage.

What Else Will Homeowner’s Insurance Cover?

Typically, homeowner’s insurance will cover personal items stolen from your car. However, it will not cover the cost of your entire automobile if it’s taken, even if it’s sitting in your driveway at the time of the theft.

If a guest is staying in your home, your insurance policy will usually cover any of their stolen belongings as well.

If your child goes off to college, your policy might cover their personal items in their dorm should they experience a theft.

Your homeowner’s insurance will also cover weather damage. But be sure to check WHAT type of weather that pertains to, especially when it comes to things like flooding.

Tips and Tricks for Making Sure You’re Covered

Keep your doors and windows locked, and invest in some form of security around your home.

Install deadbolt locks on all entry doors.

Take photos of all your valuable items, and keep receipts around when you can. If you are a victim of theft, take photos immediately after, documenting any and all damage. If your jewelry is stolen, take pictures of the ransacked box.

It’s in your best interest to create an inventory of all valuables in your house, including the value, the brand, where and when you bought them, and any other information that may help in the event of a burglary.

If you are robbed, call the police and file a report immediately.

Call your insurance company asap as well, as some policies have a time limit on when you can make your claims.

Don’t Wait to Protect Your Home

Are you still wondering, “Does home insurance cover theft?” Well, the answer is yes! It does!

However, it’s essential that you know, and understand, the ins and outs of your policy so that you’re covered the way you need to be. Make a list of all your inventory and work with your insurance representative to find a policy that works best for you.

Are you wondering if we are the right providers for you and your home? Take a read through some of our testimonials.

And feel free to give us a call with any questions!