Does Home Insurance Cover Stolen Items?

Home insurance policies cover theft, protecting personal belongings both at home and away. This is part of the personal property section of a standard homeowner’s policy. Understanding its specifics, limits, and the claims process helps policyholders navigate theft.

Understanding Your Personal Property Coverage

Personal property coverage, or Coverage C, is a core part of a standard home insurance policy, covering a wide array of belongings like furniture, electronics, and clothing. This protection applies to items stolen from your residence and also those taken while you are away from home, such as from a car or hotel room. Off-premises coverage may have lower limits, commonly around 10% of your total personal property coverage.

Reimbursement for theft depends on whether your policy uses Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV pays the depreciated value, meaning the payout is less than buying a new item. RCV reimburses the cost to replace the item with a new one of similar quality, without depreciation, resulting in a higher payout but also a higher premium.

A deductible applies before any payout, which is the amount you pay out of pocket for a covered loss. Deductibles typically range from $500 to $2,000 and are subtracted from the approved claim amount. For example, a $1,000 deductible on a $5,000 loss means the insurer pays $4,000.

Personal property coverage is typically a percentage of your dwelling coverage, which protects your home’s structure. This usually ranges from 50% to 70% of your dwelling limit. For instance, $300,000 dwelling coverage could mean $150,000 to $210,000 in personal property coverage. While this covers most household items, specific limits apply to certain valuables.

Specific Limitations and Exclusions for Stolen Items

While personal property coverage is broad, standard policies have sub-limits for certain valuable items, capping the maximum payout per category. For example, money and precious metals often have a low sub-limit ($200-$250). Jewelry, watches, furs, and precious stones frequently have sub-limits of $1,000-$2,500 for theft.

Other limits apply to firearms ($2,000-$2,500), silverware ($2,500), and electronics in vehicles ($1,000). These sub-limits apply per incident, not per item. To cover items exceeding these limits, policyholders can add a “scheduled personal property endorsement” or “floater,” which individually insures high-value items for their appraised amount.

Standard home insurance theft coverage excludes certain items and scenarios. Motor vehicles are not covered, as they fall under auto insurance. Business property, especially if used away from home or involving significant inventory, may be excluded or have low limits unless endorsed. Property of tenants or boarders is generally not covered.

Theft from a dwelling vacant for 60 consecutive days or more may void coverage. Some policies also exclude theft if there is no evidence of forced entry, or if committed by a resident of the household. Understanding these limitations and exclusions is important for managing expectations regarding potential claims.

Steps for Filing a Theft Claim

After discovering stolen items, take immediate action to protect yourself and facilitate a claim. Prioritize safety, then contact the police to report the theft promptly. A police report is mandatory for most insurers, documenting the incident and providing a required report number. Also, secure the property to prevent further loss, like repairing a broken window.

Next, gather information and documentation for your claim. Create a detailed inventory of stolen items, including descriptions, quantities, purchase dates, costs, and current values. Supporting documents like receipts, appraisals, photos, or videos strengthen your claim by proving ownership and value. Proactively maintain a home inventory, stored securely off-site or digitally.

Once documented, contact your insurance company promptly to report the theft. Provide your policy number and incident details, including date, time, and circumstances. An adjuster will investigate, assess damage, and verify stolen items against your documentation.

Finally, submit all gathered information, including the police report number and inventory, to the insurer. The adjuster may visit your home to inspect damage and discuss the incident. After assessment, the insurer determines coverage and offers a settlement, minus your deductible.