Dealing with theft is stressful, but knowing whether your homeowners’ insurance can help makes a big difference. In most cases, homeowners insurance does cover theft, but there are some limits and conditions to keep in mind. Learn how theft coverage works and what steps to take if you experience it.
Will Your Homeowners Insurance Policy Cover Theft?
What Qualifies as Theft?
To qualify as theft, there needs to be clear evidence of unlawful taking of property. This includes:
- Stolen jewelry, electronics, or other valuables
- Items taken from your home during a break-in
- Property stolen from an outbuilding like a shed or garage
What Does Not Qualify as Theft?
Certain situations might not count as theft under your policy, such as:
- Misplaced items
- Fraud or identity theft (unless your policy includes special coverage for this)
- Losses where no police report is filed
Factors That Affect Theft Coverage
Insurance Policy Limits
Your coverage is capped based on your policy’s terms. For high-value items like jewelry, additional riders might be required. These riders allow you to specifically list and insure items for their full value, that way you’re not left underinsured if something happens.
Actual Cash Value vs. Replacement Cost
Some policies reimburse based on actual cash value, which accounts for depreciation, while others offer replacement cost coverage to pay for new replacements.
Location of Theft
Theft occurring outside your home might not be covered unless stated in your policy.
Are There Limitations to Theft Coverage?
Yes, there are often limits to how much your home insurance will pay for certain categories of stolen items. For example:
- Jewelry, art, or collectibles might only be covered up to a set dollar amount unless you have extra coverage
- Dwelling coverage typically applies to damage to your home caused by the theft, but it doesn’t cover wear and tear
- Items stolen from your car might fall under your auto insurance policy instead of your homeowners’ policy
What To Do If You Experience Theft
File a Police Report
This is important for documenting the theft and is often required for filing an insurance claim. The police report creates an official record of the incident, which your insurance provider might request during the claims process.
Document the Loss
Take inventory of all stolen items, noting details such as make, model, and purchase date. If you have receipts, photographs, or serial numbers, include them as evidence. Don’t forget to photograph any damage to your property, such as broken locks or windows.
Hire a Licensed Public Adjuster
A public adjuster can advocate on your behalf to secure a fair and reasonable settlement. They can help you navigate the claims process, gather evidence, and negotiate directly with your insurance company.
Review Your Coverage
Understand whether your policy reimburses based on replacement cost or actual cash value. This will help you manage expectations about your settlement and plan for repairs or replacements. At Excel Adjusters, we can guide you through reviewing your policy and clarifying your coverage.
Contact Your Insurance Provider
Report the theft to your insurance provider as soon as possible. Be prepared to provide details from the police report and proof of ownership for the stolen items. If you feel overwhelmed during this process, Excel Adjusters can step in to assist by helping you organize your documentation and communicating directly with your insurance provider to support your claim.
How Excel Adjusters Can Help with Your Theft Claim
Dealing with theft is hard enough without the added stress of filing a claim. At Excel Adjusters, we specialize in helping homeowners navigate the claims process. Whether you’re dealing with stolen personal belongings or property damage, our licensed adjusters will work with your insurance provider to secure a fair and reasonable settlement. We understand how to handle complex theft claims and support you every step of the way.
If you’ve experienced theft, don’t face the claims process alone. Contact Excel Adjusters today for expert help.
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