2024-01-01 · home, claims

Home Insurance Theft Claims

Overview

Homeowners and renters insurance typically cover theft, whether items are stolen from your home or, in many cases, from your car or while traveling. The claim outcome depends on how well you document stolen items, your policy’s personal property limits, and any sublimits for valuables.

What theft coverage usually includes

Most policies cover personal property stolen from:

Inside the home: electronics, furniture, clothing, and appliances.
Garages or sheds: tools, bikes, or stored items (subject to limits).
Off-premises locations: stolen luggage or items taken from a vehicle, often with lower limits.
Vandalism related to theft: broken doors, windows, or locks caused by a break-in.

Common exclusions and limitations

Theft claims can be reduced or denied if:

Property isn’t listed or documented. Proof is required for high-value items.
Sublimits apply. Jewelry, cash, collectibles, and firearms often have caps.
Vacancy rules are violated. Some policies exclude theft if the home is vacant beyond a set period.
Business property limits apply to work equipment kept at home.
Unexplained loss exclusions apply (missing items with no clear theft evidence).

First steps after a burglary

Take these actions to protect your home and preserve evidence:

Call the police and file a report. Insurers usually require a police report number.
Secure the property. Repair broken doors or windows to prevent further loss.
Document the scene. Photos of damage and the point of entry help confirm theft.
Create an inventory. List each stolen item with details and estimated value.
Notify your insurer. Ask about documentation requirements and timelines.

How to document stolen property

Strong proof of ownership speeds up the claim.

Receipts, invoices, or online order confirmations.
Photos or videos showing the items in your home.
Serial numbers for electronics or tools.
Warranty registrations or appraisals for valuables.

If you do not have receipts, use comparable listings to estimate value, but be prepared for ACV depreciation unless you have replacement cost coverage.

Understanding personal property limits and sublimits

Theft is covered under personal property (Coverage C), but most policies have caps for high-value items. Typical sublimits include:

Jewelry and watches
Cash and precious metals
Firearms
Fine art or collectibles

If you own high-value items, schedule them separately with a personal articles floater or endorsement to expand coverage and avoid low caps.

Replacement cost vs actual cash value

Actual cash value (ACV): pays the depreciated value of stolen items.
Replacement cost: pays the amount to buy new items of similar quality.

If you only have ACV coverage, the payout may be significantly lower than expected. Consider upgrading to replacement cost if you own newer or higher-value items.

Should you file a theft claim?

Evaluate the likely payout relative to your deductible and potential rate impact.

If the stolen value is close to the deductible, filing may not be worth it.
Multiple theft claims can increase premiums or affect renewals.
Large losses or forced entry damage often justify a claim.

Request a claim estimate before opening a formal claim if you are unsure.

Preventing future theft losses

Insurers may offer discounts for security improvements. Common upgrades include:

Alarm systems or monitored security
Deadbolt locks and reinforced door frames
Motion-activated lighting and cameras
Documented home inventories

Consider photographing valuables once a year and saving the files with model numbers and serial numbers. This simple habit makes future claims faster and more accurate.

Next steps

Review your personal property coverage limit and create a detailed home inventory. If you own valuables that exceed sublimits, schedule those items so the coverage matches their value. Keep an updated inventory in cloud storage so you can access it quickly if theft happens again.