Does My Homeowners Policy Cover Theft?

It's peoples biggest fears. They come home from work or vacation and find that their home has been broken into. You feel like your life has been turned upside down. You feel violated that someone was in your personal space and walked away with items that make your home, home. After the shock wears off and you take stock of what has been stolen, what do you do now? Who do you call and how will you replace the items that are now gone?

Theft and Your Policy

Most standard homeowners policies will cover items that have been stolen from the home up to a certain limit as stated in your homeowners policy. The insurance company will generally set deductibles and payout limits that will be spelled out in your policy. This is especially true if items are not individually listed, or scheduled. If that is the case then the payout from the insurance company may not cover the replacement cost of all the items stolen from the home. If you have items that have worth, for example jewelry, it would be an excellent an idea to schedule these items. You may list the 3 carat ruby ring you own or set of pearl and diamond earrings along with their appraised value. This will insure that you reimbursed the value of the items even if you have reached your policies maximum payout.

Coverage Limits

Any items that have been stolen are subject to the deductibles and coverage limits of your policy. The cost of the items stolen must exceed your deductible for the insurance to payout. For example, if $1,000 worth of items have been stolen and your deductible is $1,000, then the insurance will not payout any money. The cost will have to be covered by you. There are also coverage limits that are set. If $50,000 worth of items have been stolen but your coverage limit is $25,000, then you will have to cover the other $25,000 to replace your items.

Many insurance companies will use category limits, also known as special limits of liability. You may see jewelry, for example, may have a limit of $10,000. It's worth noting that there is also a per item limit under these categories where scheduling, as described above, will help make sure you cover more valuable items. Insurance companies will also differ on the maximum limit they will pay for loss. You can increase the limits on any valuable item you own, but your insurance premium will go up.

Policy Terms

Make sure to review the terms and conditions of your homeowner's policy and ask any questions. Check and see if your policy specifically lists any personal property that is covered for theft. If your policy has limits on items such as jewelry, antiques, collectibles, artwork, money, electronics or anything else of high value, you may want to consider purchasing additional coverage. Your policy will list any conditions or limitations that apply as well as any additional coverage.

Additional Coverage

When purchasing additional coverage for specific items, it's important to get an appraisal by a reputable independent third party. Talk to your insurance agent and have them list each appraised item with its value in your homeowner's policy. This way, if an item is stolen, you have proof of its worth and the insurance company will reimburse you accordingly. It's always good to have your items re-appraised from time to time, especially if the value rises. Up-to-date appraisals will help make sure you have proper coverage and are correctly reimbursed in case something happens.

Claims

The first thing you should do if you have been a victim of theft is call your local police to department to file a report. Give the police a detailed description of any personal property that has been stolen. Next, check your homeowner's policy for coverage information and contact your insurance agent to file a claim. Most insurer's will ask for a copy of the police report as proof that you have in fact been robbed. Provide your agent with a detailed description of items that have been stolen along with any supporting proof of the items value. Some documentation that is helpful include store receipts, canceled checks, credit card receipts, warranties and guarantees. This will help prove to the insurance company that the items did exist and you are in fact the owner.