Does homeowners insurance cover theft? Limits, valuables and how to claim

What theft coverage includes

Theft is one of the named causes of loss on almost every homeowners and renters policy. Stolen belongings are paid under personal property coverage, and damage the burglar did to the house, such as a broken door or window, is paid under the dwelling coverage. Both come with your deductible.

Things a theft claim usually doesn't cover:

• Items you lost or can't find, with no sign they were stolen. Insurers call this mysterious disappearance.
• Theft by someone who lives in your household.
• The car itself. That is your auto policy, under comprehensive coverage.
• On some policies, theft from a home that has been left empty for a long stretch, often 60 days or more.
• Business equipment above a small allowance, if you work from home.

Does homeowners insurance cover theft away from home?

Usually yes. Personal property coverage follows your things, so a laptop taken from your car, luggage stolen on a trip, or a bike stolen from a rack at work is normally covered by your home or renters policy, not your auto policy. Some policies pay less for property kept away from home, often a share of the total limit, and some exclude things left in an unlocked car. Check your policy for both.

Things kept in a storage unit, or a student's belongings in a college dorm, are often covered too, with their own limits. If your child is away at school, ask your agent whether their things count under your policy or need their own renters cover.

Limits on jewelry, cash and other valuables

Inside your personal property limit, a few kinds of property have a much lower sublimit for theft. On common policy forms the figures look something like this, though your own are in the policy:

• Jewelry, watches and furs: around $1,500 in total.
• Cash, gift cards and coins: around $200.
• Firearms: around $2,500.
• Silverware and gold or silver items: around $2,500.

Those limits are for all items of that kind together, not each one. A burglary that takes an engagement ring and two watches is paid as one jewelry total, up to the limit.

What is scheduled personal property?

Scheduling means listing a valuable item on your policy by itself, with an agreed value, usually from an appraisal or receipt. It is also called a rider or a floater. A scheduled ring is insured for its full listed value instead of the jewelry limit, and often covers losing it as well as theft, sometimes with no deductible.

It costs extra each year, priced on the item's value. It is worth asking about for any single piece worth more than your theft limit, and the price should be updated every few years as values change.

How to file a theft claim

1. Call the police and file a police report. Most policies require one for theft, and the insurer will ask for the report number.
2. Report the claim to your insurer as soon as you can and ask for a claim number.
3. Photograph any damage to doors, windows or locks before it is repaired.
4. List everything that was taken, with brand, model, serial number and when you bought it, where you can.
5. Gather proof that you owned each thing: receipts, order emails, bank statements, photos, the box it came in.
6. Give the police any serial numbers too, so recovered items can be matched to you.

If you don't have receipts, there are other ways to show you owned something. Our guide to an insurance claim without receipts lists them.

Is it worth filing a theft claim?

Add up what was taken, take off the limits and your deductible, and compare. A burglary might work out like this:

The figures here are at replacement cost. On a policy that pays the depreciated value, the payment would be lower. A small claim near your deductible may not be worth the effect on your premium, so ask your agent how a claim would change it.

Before the next one

The hardest part of a theft claim is remembering what was there. Ten minutes with a phone camera in each room, and a note of serial numbers for the expensive things, makes the next claim much easier. Our home inventory checklist goes room by room.

Where Indemnia helps

Indemnia keeps a running list of what you own, from photos and the receipts already in your email, with today's price on each item. After a theft, the list your insurer asks for is already made.