Does Homeowner’s Insurance Cover Theft?

Does Homeowner’s Insurance Cover Theft?

Yes, as long as theft is covered under your policy. Theft is a standard event covered under property insurance.

Homeowners insurance is a type of property insurance, which aims to protect your assets from damage and liability. It covers replacement or repair costs for loss from theft or damage from covered events, as well as additional living expenses during the time your home is uninhabitable.

Homeowner’s Insurance Overview

Homeowner’s insurance comes in many forms. There is limited coverage, which is no longer offered in many states but which covers your property in the case of a small number of events. The next level of coverage insures your home for damage from 16 named perils, including fire, theft, and certain weather conditions. The most comprehensive coverage is called comprehensive personal property liability or umbrella liability, which covers your property in all cases except for specific named events in your policy. This may be a good option if your home is in an area prone to hazardous weather events, if you have many pets, or for any number of cases.

Homeowner’s insurance also comes in the form of renter’s insurance and condo insurance, which are specified to those living arrangements. Renter’s insurance also has protection from theft, liability, and damage from covered events. It protects the unit and personal property. Condo insurance protects from theft, liability, and damage as well, and covers the unit, its furnishings, and personal property. It also has liability coverage for damage caused to neighboring units and to common areas.

Property Loss Coverage

If you are the victim of burglary or theft, your homeowner’s insurance will provide payment in one of three ways per your policy. Replacement will cover the cost of repairing or replacing the property with the same replacement cost value. Actual cash value coverage will provide the worth of the property as is, meaning this is the replacement cost minus depreciation. Extended replacement costs will account for increased construction costs, extending the replacement value up to 25 percent of the limit insurance is willing to pay for the event.

Why Property Insurance?

Property insurance, such as homeowner’s insurance, is important to carry in order to protect your belongings and save yourself from the legal liability should someone else be injured on your property. Insurance will reimburse the costs to repair any possessions damaged by a covered event and pay to replace any lost items from theft. This should give you peace of mind in your home. To protect expensive items, you can add a valuable articles rider, protecting antiques, electronics, art, and all valuables in the event of theft or damage from another covered event. 

For all of your property and casualty insurance questions, do not hesitate to reach out to Redwood Agency Group.