Does Homeowners Insurance Cover Car Theft?
Confused about car theft insurance? Learn whether homeowners insurance covers your stolen vehicle or personal items inside it.
Homeowners insurance protects your dwelling and personal belongings, while auto insurance covers your vehicle and liabilities arising from its use. Both types of insurance policies offer financial safeguards, yet their coverages are distinct. This article addresses homeowners insurance’s role in car theft.
Coverage for the Stolen Vehicle
Homeowners insurance policies do not cover the theft of the vehicle itself. Your car is considered a separate insurable asset, distinct from your home and its contents. Therefore, your homeowners insurance policy will not provide coverage for its replacement or damage from theft.
Coverage for a stolen vehicle falls under your auto insurance policy. Comprehensive coverage within your auto insurance protects against non-collision events, including theft. This coverage can replace your vehicle if unrecovered or cover repair costs if found damaged after theft. If a vehicle is stolen and not recovered, comprehensive coverage typically pays its actual cash value at the time of theft, minus your deductible.
Coverage for Personal Property Stolen from a Vehicle
While your homeowners insurance excludes coverage for the stolen vehicle, it often covers personal property stolen from inside the vehicle. This protection falls under the personal property coverage section of your homeowners policy. This coverage extends to your belongings even when they are away from your home, including items stolen from your car.
Personal property coverage reimburses you for items like electronics, clothing, or other valuables stolen from your car. However, these claims are subject to your policy’s deductible and may have specific limitations. Many policies include sub-limits for certain high-value items such as jewelry, firearms, cash, or specialized electronics, with a maximum payout regardless of actual value. Coverage for personal property stolen away from the home might also be limited to a percentage, often 10%, of your total personal property coverage limit.
Key Considerations for Insurance Policies
Understanding the terms of your insurance policies is important when dealing with vehicle theft. Both comprehensive auto insurance and homeowners personal property coverage involve a deductible, the amount you pay out-of-pocket before coverage begins. The deductible amount can significantly impact your net reimbursement for a claim.
Homeowners policies also have overall coverage limits for personal property, often set as a percentage, such as 50% to 70%, of your dwelling coverage amount. Review these limits and any sub-limits for high-value items, as categories like business equipment may be excluded or have very low limits. You may need to purchase additional coverage, known as an endorsement or rider, to insure particularly valuable items.
To facilitate a theft claim, maintaining a detailed inventory of your possessions, including descriptions, purchase dates, and photos, can be beneficial. This documentation helps substantiate your loss and can expedite the claims process. Reporting the theft to the police and obtaining a police report is a mandatory step for filing a claim with either your auto or homeowners insurance provider.