Does My Insurance Cover Theft and How to File a Claim

Theft coverage varies by insurance type and policy terms. It is not universal. Review your policy documents to understand your protection.

Common Insurance Types and Theft Coverage

Theft coverage is integrated into personal insurance policies, varying by type. These policies provide financial protection against unexpected theft losses.

Homeowners Insurance

Homeowners insurance covers personal property stolen from your home and structural damage from break-ins. This protection extends to belongings stolen from your residence and detached structures like garages or sheds. Policies offer “personal property coverage” to replace or repair stolen or damaged belongings. This insurance may also cover personal items stolen away from home, such as during travel or from your car, often with lower limits.

Renters Insurance

Renters insurance covers personal property against theft. This policy protects belongings like electronics, furniture, and clothing if stolen from your rented home. Its theft coverage often extends beyond the rental unit, protecting items stolen from a vehicle, a storage unit, or while traveling. Renters insurance does not cover building structure damage; that falls under the landlord’s insurance.

Auto Insurance

Auto insurance, specifically comprehensive coverage, addresses vehicle theft. If your vehicle is stolen and not recovered, comprehensive coverage can reimburse its actual cash value, minus your deductible. This coverage also pays for damages if the stolen vehicle is recovered, such as broken windows or vandalism. While comprehensive coverage protects the vehicle, it does not cover personal belongings stolen from inside the car; those are typically covered by a homeowners or renters policy.

Travel Insurance

Travel insurance includes benefits for lost, damaged, or stolen baggage and personal effects during a trip. This coverage can reimburse you for items like clothing, electronics, and other travel essentials. It may also cover costs for replacing passports, visas, or unauthorized charges on stolen credit cards. Travel insurance does not cover items accidentally left behind or stolen from unattended bags, and limits apply to high-value items unless additional coverage is purchased.

Key Policy Details Affecting Theft Coverage

Policy terms and conditions determine the scope of theft coverage. Insurance policies define “theft” as the unlawful taking of personal property without consent, intending to permanently deprive the owner of its use. This includes burglary (breaking and entering), robbery (theft with force), and larceny (taking property without knowledge).

Policy Limits

Policy limits represent the maximum amount your insurer will pay for a covered loss. Most personal property coverage in homeowners and renters policies has an overall limit, often a percentage of the dwelling coverage for homeowners insurance. Beyond this, many policies impose “sub-limits” on specific high-value items like jewelry, furs, firearms, or cash. For example, cash coverage might be limited to $250, and jewelry to $1,000 or $2,000, unless specified.

Deductibles

Deductibles are the amount you pay out-of-pocket before insurance coverage begins. If stolen item value does not exceed your deductible, the policy will not reimburse. For high-value items exceeding standard sub-limits, policies allow “scheduled personal property” coverage. This involves listing individual high-value items on your policy, often requiring an appraisal, to ensure full value coverage against perils, including theft.

Exclusions

Exclusions specify situations or items not covered by the policy. Common exclusions include theft from a dwelling under construction, or if stolen by the policyholder. Some policies may also limit or exclude coverage for homes vacant for an extended period. Claims may be denied if there is no evidence of forced entry, or if the insurer suspects negligence.

Preparing to Make a Theft Claim

After discovering a theft, take preparatory steps before contacting your insurer. Ensure personal safety and secure your property, if possible. This may involve changing locks or boarding up broken windows to prevent further loss.

Report to Law Enforcement

Report the theft to law enforcement. Filing an official police report documents the incident and is almost always a requirement for an insurance claim. The police report provides an account of the incident, which adjusters consider credible evidence. This report includes details like the date, time, and location of the theft. Obtain a copy for your claim.

Document Stolen Items

Document stolen items thoroughly. Create a detailed list of everything missing, including descriptions, brand names, models, and serial numbers. Gather evidence of ownership and value, such as purchase receipts, invoices, appraisals, or photographs. Keeping digital copies of receipts and maintaining a home inventory with photos or videos can streamline this process. For high-value items, appraisals or warranty documents provide proof of ownership and value.

Understand Reporting Deadlines

Understand policy-specific reporting deadlines. Most policies require prompt notification of a loss. Delaying this step could lead to complications or a claim denial.

The Theft Insurance Claim Process

After preparatory steps, initiate the theft insurance claim by contacting your insurer. Notify your insurance company as soon as possible after the theft, providing your policy number and incident details. This involves providing the police report number and a preliminary list of stolen items.

Work with a Claims Adjuster

Once notified, the insurance company assigns a claims adjuster. The adjuster investigates the claim, verifies details, and assesses your loss. This may involve reviewing the police report and examining property damage. Cooperating fully with the adjuster and providing any requested documentation or information will help expedite the process.

Valuation and Settlement

The adjuster determines coverage based on your policy’s terms, including limits, deductibles, and exclusions. They assess the value of stolen items, which may be based on actual cash value (ACV) or replacement cost value (RCV), depending on your policy. Once the investigation is complete, the adjuster will settle the claim and present a settlement offer.

Appeals and Payment

If you disagree with the settlement offer or your claim is denied, you have options. You can appeal the decision by submitting a formal written request to your insurance company, explaining your position and providing supporting documentation. Upon approval and settlement, you will receive payment for covered losses, minus your deductible. If stolen items are recovered after payment, they become the property of the insurance company.