Does Home Insurance Cover Robbery? What Is Covered

Home insurance protects a significant investment and personal belongings from unforeseen events. Understanding this protection, especially concerning robbery, is important. This article clarifies how homeowners insurance addresses robbery, detailing what is covered, excluded, and the steps for filing a claim.

Understanding Coverage for Robbery

Most standard homeowners insurance policies, such as HO-3 or HO-5 forms, cover theft, which encompasses robbery. Robbery, in an insurance context, is defined as theft involving force or the threat of violence to take property. This coverage usually falls under the “personal property” section of your policy. It extends to items stolen from your home and personal property stolen while away, such as during travel.

What is Covered by a Policy

Homeowners policies cover personal belongings like furniture, electronics, clothing, and other household items. The amount of personal property coverage is often set as a percentage, commonly 50% to 70%, of your dwelling coverage. When a claim is settled, the reimbursement method depends on whether your policy offers Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV policies pay the depreciated value of the stolen item, considering its age and wear, while RCV policies pay the cost to replace the item with a new one of similar kind and quality without deducting for depreciation.

Certain high-value items, such as jewelry, furs, collectibles, and firearms, often have specific sub-limits within a standard policy. This means they are only covered up to a certain dollar amount, which might be lower than their actual value, unless they are specifically scheduled or endorsed onto the policy for additional coverage. Damages to the home structure, like broken windows or doors resulting from a forced entry during a robbery, are typically covered under the dwelling coverage portion of the policy.

What is Not Covered by a Policy

Homeowners insurance policies have exclusions that limit coverage for certain types of theft or property. Theft committed by a resident of the insured household, such as a family member or roommate, is generally excluded. Property used for business purposes, including business equipment, is also commonly excluded from standard homeowners policies. Coverage for theft from a vehicle may be limited or excluded, often falling under an auto insurance policy’s comprehensive coverage instead.

Losses from theft that occur in a home that has been vacant for an extended period, often 30 to 90 days, may not be covered. Some policies may also require visible signs of forced entry for a theft claim to be covered, meaning a loss without such evidence might be denied. Additionally, cash and other valuable papers often have very low sub-limits, sometimes as little as $200-$500, even if other personal property coverage limits are higher.

Preparing to File a Claim

After discovering a robbery, immediately contact law enforcement to file an official police report. Obtaining a police report number and the officer’s contact information is a prerequisite for most insurance claims. Concurrently, begin creating a detailed inventory of all stolen items. This list should include descriptions, quantities, approximate dates of purchase, and estimated values for each item.

Gathering evidence of ownership and value is also important. This can include receipts, appraisals, photographs, videos, credit card statements, and serial numbers. Document any damage to the property, such as broken windows or damaged doors, by taking clear photographs or videos before making any repairs. Reviewing your insurance policy to understand your coverage limits and deductible before contacting the insurer will help manage expectations.

The Claim Submission Process

Once information and documentation are gathered, notify your insurance company about the robbery. This can typically be done via phone, through an online portal, or using a mobile application, and prompt notification is often a policy requirement. After initial notification, the insurer will usually assign a claims adjuster to your case. The adjuster will assess the damage and loss, and may request additional documentation or an in-person inspection of the property.

Cooperating fully with the adjuster and providing all requested documents helps expedite the claim process. While timelines can vary, insurers are generally required to acknowledge a claim within 15 days and make a decision to approve or deny within 15 to 40 days, though extensions may be requested. Once the claim is approved, you will receive a settlement offer, and the deductible amount will be subtracted from the total payout.