Does Homeowner's Insurance Cover Theft?
According to the FBI, there were an estimated 1.8 million residential burglaries reported in 2014 in the U.S. Having your home broken into is an extremely traumatic experience. As a homeowner, it is important to be prepared and informed on the procedures that you need to take to recover from such an incident. This includes understanding and seeing if your homeowner’s insurance covers theft and to what extent everything will be covered. If your home was broken into and damaged tomorrow, would you know how to proceed?
What is Theft Insurance?
Standard homeowner’s insurance policies typically cover theft of your personal property, as well as damage and vandalism to your home. It is important to understand, however, that not all homeowner’s insurance policies are created equal, and each of them have limitations when it comes to deductibles and coverage limits. Theft insurance is therefore not always needed, however, additional coverage packages are available. In order to understand if an additional theft insurance policy is worth paying for, it is valuable for homeowners to collect a comprehensive inventory of their belongings (HomeID is a convenient and free tool for homeowners to utilize) and share it with their insurance provider. Tracking your home inventory will enable your insurance provider to tailor your policy in a way that will benefit you best and could in turn even save you money!
Homeowner's Insurance Theft Coverage
Typically, homeowner’s insurance covers theft of your property and damages that have occurred to your home in the result of a break-in. Always refer to your insurance policy to see the specifics of what exactly will be covered. There are four common homeowner’s insurance coverages that you should be aware of:
- Replacement Cost Value Coverage (RCV)
- Actual Cash Value Coverage (ACV)
- Scheduled Personal Property Coverage
- Dwelling Coverage
If your policy includes “replacement cost” coverage, it means that your insurer will value your personal belongings at the cost it would be to repurchase the item at today’s price. This coverage means it will replace the stolen property without deducting the depreciation of the item. Most replacement cost coverages are typically only about 10% more than ACV coverage.
Actual cash value coverage will cause the insurer to deduct the depreciation of the property, meaning they will only pay what the stolen item is worth today. They will not give you the value of buying a new one.
Scheduled personal property is used to cover valuables that exceed the dollar limitation that standard homeowner’s insurance covers. An item can be “scheduled” by providing your insurance company with a recent receipt or professional appraisal.
Dwelling coverage is a policy that financially protects your home’s physical structure in case it is ever destroyed or damaged from theft, vandalism, windstorms, etc. Depending on the coverage, this policy typically extends the protection to rooms, carpeting, floors, roofs, and anything that may have been damaged.
It is a necessity for you as a homeowner to review your homeowner’s insurance frequently to become more familiar with the specifications of each policy. Becoming familiar with your policies will better prepare you for future unexpected events and help make the claim’s process less stressful.
Homeowner's Theft Insurance Claim Process
To get the claim process going it’s important to try to document any property damages that were made with either photos or videos.
Theft Insurance Claim Process:
Step #1 – Report any theft or burglary to the police.
Step #2 – Call your insurance agent or company as soon as possible. Insurance policies tend to put a time limit on filing claims. It is important to ask questions and become informed. Figure out if your claim exceeds your deductible, which is the amount of loss that was agreed to pay when you purchased your policy.
Step #3 – Try to follow up your call with a detailed explanation of what happened in writing at the request of your insurance.
Step #4 – Protect your property by making the necessary repairs that will temporarily prevent your property from enduring further damages. Be sure to save your receipts for everything you spent and submit it to your insurance for reimbursement.
Step #5 – Prepare a list of stolen items, along with receipts to make it easier to replace them. Save receipts for any additional living expenses you may have incurred in having to find other accommodations.
Advantages of Choosing HomeID
HomeID offers the best inventory software available for homeowners. Our software will enable you to take control and track all of your valuable investments. By uploading documents and photos of your home assets, you are taking the steps to ensure that your assets are both protected and accounted for. HomeID also helps you store your product warranty information, which will make it easier for you to replace your damaged items or file an insurance claim.
HomeID Testimonials
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“I no longer have to scramble for my important home documents and contacts. HomeID has turned me into an organized person without me even trying to be.” – Jason Das, Tuscan, AZ
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“Having a HomeID account has been a blessing! Tracking your home inventory is truly important, and I never knew how to before now.” – Kelly W., Seattle, WA
Create Your Account
No one can predict when a theft or burglary will occur, but you can certainly prepare for the unexpected. Creating a HomeID account not only prepares you for the unexpected, but it also helps you as a homeowner manage your home and protect your largest investments. Organizing all of your investments has never been so simple. You can upload photos, videos, documents, etc. directly to your secure HomeID portal within seconds. HomeID isn’t just for home inventory, you can also manage your home maintenance, search for licensed contractors, and manage your automated smart home all in one place. Take control of the things that matter and create your free HomeID account today!