Does Homeowners Insurance Cover Theft?
Standard homeowners insurance typically covers theft. This applies to both stolen items and damage to the home that occurred during the theft.
Fortunately, prevention technology like video doorbells and smart locks has made break-ins less frequent and less successful. That’s one reason why homeowners insurance claims for theft are far less common than claims related to wind, water, and fire.
However, many homeowners simply aren’t aware of what their policy covers when it comes to theft, and they miss out on valuable benefits as a result. Here are some of the basics you should know.
How Theft Is Covered by Homeowners Insurance
There are several ways that homeowners insurance covers theft-related losses and damage.
- Stolen belongings. Personal property coverage helps pay to replace or repair stolen or damaged items like furniture, electronics, and clothing.
- Home structure damage. Dwelling coverage typically covers things like kicked-in doors and broken windows after someone breaks into a home.
- Outside structures. Theft-related damage to detached buildings like a garage or shed is covered by “other structures” coverage
- Theft outside the home. Most policies include off-premises coverage, which typically covers items stolen from your car or hotel while traveling. Auto insurance covers damage to your personal vehicle, but if a laptop, golf clubs, or suitcases are stolen, those are generally covered by homeowners insurance.
Limits and Exclusions
Of course, no insurance policy offers unlimited, unconditional coverage. Limits and exclusions often affect decisions about claims.
- Sub-limits on valuables. Expensive items like jewelry and fine art often have limits that are below your overall policy limit.
- Off-premises limits. Theft losses and damage outside the home are typically covered, but only up to a small percentage (often 10%) of your total personal property limit.
- Deductibles. According to the Insurance Information Institute, the average theft loss for homeowners from 2019-2023 was $5,524. If you have a $5,000 deductible, you have to weigh how much you can recover vs. how much your premiums may increase for filing a claim.
- Special circumstances. If someone inside the home is responsible for theft, you can’t prove loss or damage were caused by theft, or negligence (unlocked door) contributed to the theft, you probably won’t be covered. Also, some policies won’t automatically cover theft if it’s not explicitly mentioned.
If you’re unsure about theft coverage included in your homeowners insurance policy, schedule an appointment with Stanton Insurance Group. We’ll be happy to review your coverage and answer your questions!
