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More and more people are purchasing electric vehicles (EVs) for their environmental benefits and financial advantages, such as lower fuel and maintenance costs.

But one important consideration when owning an electric vehicle is the cost of insurance. While insurance for EVs generally works the same as insurance for cars with combustion engines, premiums tend to be more expensive.

Here’s a look at what you need to know before you insure an EV.

Understanding Electric Vehicle Insurance

In general, EV insurance works the same as insurance for a gas-powered car. You pay an insurer a premium for coverage against financial losses in the case of an accident or other damage to your vehicle. It can also protect you against medical bills or other property damage that might occur in the case of an accident.

What Is Electric Vehicle (EV) Insurance?

Most insurers offer the same standard coverage options for EVs that they do for gas-powered cars. This means you’ll probably consider options like liability, collision, and comprehensive coverage when insuring an electric vehicle.

Though not required, you can also purchase additional coverages for extra peace of mind.

How Does EV Insurance Differ from Traditional Car Insurance?

The most notable difference between insuring an EV vs. a hybrid or gas-powered car is the cost. The cost of car insurance for electric vehicles tends to be higher, and there are a few reasons why.

For starters, it can be expensive to repair an EV, as the price of equipment is relatively high — at least right now. Also, not all mechanics work on electric vehicles. You may have to go to a special shop to have repairs made, which could add to the overall cost.

Plus, EVs tend to be more expensive to replace, and as a result, an insurer may decide to charge more for coverage.

The Importance of Specialized Coverage for EVs

As we discussed, EVs typically have a higher value than gas-powered cars, and they often cost more to repair. Purchasing specialized coverage for your electric vehicle may help provide an extra level of protection.

Coverage for your car’s battery, for instance, might be worth exploring, as replacing one can be very expensive. You may also want to look into rental reimbursement coverage, which can help you save money while your EV is being repaired.

Factors Affecting Electric Vehicle Insurance Costs

As we’ve mentioned, there are several factors that can impact the cost of EV insurance premiums. Let’s take a closer look at two common ones.

Vehicle Value and Its Impact on Premiums

EVs tend to be more expensive than traditional cars. The average price paid for a new electric vehicle was about $55,689, according to August 2025 data from Kelley Blue Book. Gas-powered cars averaged about $48,800. That’s a difference of nearly $7,000.

Why the higher cost? EVs make use of specialized technology, such as batteries or regenerative braking systems, which can cost a lot to replace. Battery systems often use expensive raw materials like lithium and cobalt that increase manufacturing costs. Replacing a battery alone can cost anywhere from $5,000 to $20,000.

Higher costs mean the vehicle is more costly to replace or repair. They also signify a greater risk for insurers, which can lead to higher insurance premiums.

The High Cost of EV Repairs

Repairing EVs often requires the services of specialty mechanics who have been trained in electric vehicle repair. The number of repair shops that offer these services may be limited, and working with specialized shops can be more costly than working with traditional mechanics.

Recommended: Cheapest Car Insurance Companies

Discounts and Savings for Electric Vehicles

While the cost of EV insurance may be higher, there are opportunities to help offset it.

Types of Discounts Available for EV Owners

For now, the federal government offers a tax credit of up to $7,500 for people who buy or lease an EV. That tax credit is set to expire on September 30, 2025. If you made a payment on an EV before that date, you can claim the credit, per the IRS.

Though the federal tax credit is ending, many states offer incentives of their own in the form of rebates and tax deductions. For example, in California, the California Air Resources Board offers grants of up to $7,500 for EV buyers with qualifying incomes. It also offers grants for charging units of up to $2,000. In New York, you may get a point-of-sale rebate of up to $2,000 is available through the New York State Energy Research and Development Authority.

Local municipalities may also offer various incentive programs.

How to Qualify for Lower Insurance Rates

Qualifying for a lower insurance rate is another way to defray the costs of insurance. The best way to save on the cost of car insurance is to maintain a good driving record. You might consider other strategies such as bundling your auto insurance with home insurance that can reduce overall cost.

You might consider increasing your deductible. Doing so will mean that you will have to pay more out of pocket in the event of an accident. But the more risk you shoulder, the lower your monthly premium may be, which could work to your advantage in the long run.

Another way to save on car insurance: Maintain a good credit score. Studies show that a good score is correlated to safer driving behaviors, so insurers may look at your credit score when setting premium rates. You can give your score a boost by always making payments on time and paying off debts to reduce your credit utilization ratio.

Essential Coverage for Electric Cars

Car insurance coverage needs are typically the same for EVs as they are for traditional gas-powered vehicles. You’ll want to consider liability coverage (required in most states), collision coverage, and comprehensive coverage.

Liability auto insurance covers the cost of property damage and injury to others that you might cause in an accident. Collision insurance covers the cost of damage to your car in an accident, while comprehensive insurance protects against damage that might occur outside of an accident, such as theft or damaging weather events.

Insurers may offer protection specific to EVs, such as coverage for batteries that have been damaged in a covered event.

Recommended: Cheapest Cars to Insure in 2025

Getting Your Electric Vehicle Insurance Quote

The first step toward insuring your EV is obtaining a quote from an insurer.

How to Obtain a Personalized Quote

To get a personalized quote, you’ll need to provide potential insurers with the following information:

•   Personal information, including your name, date of birth, and address.

•   Your vehicle identification number, or VIN, and the year, make, and model of your car

•   Information about the drivers who will be driving the vehicle, including their driving records

•   Estimate annual mileage you will be driving

Benefits of Comparing Quotes Before Deciding

Always obtain quotes from multiple insurers. Compare offers to help make sure you are getting the coverage that you need at the best price. Consider online car insurance, which offers personalized coverage at competitive rates.

The Takeaway

For now, EV insurance is more expensive than regular car insurance. However, as the technology continues to become more common and more electric vehicles hit the road, the price of policies may come down. In the meantime, take advantage of grants and tax incentives to help offset the cost of insurance, and be sure to compare options to maximize coverage at the best price.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

Is it always more expensive to insure an electric car?

The cost of insurance for electric cars isn’t always more expensive, but it tends to be higher than for equivalent gas-powered vehicles. That’s largely due to the higher sticker price of vehicles and the higher cost of repairs and replacement parts.

Does car insurance cover my EV battery if it gets damaged?

Your car insurance may cover the cost of your EV battery if it is damaged in a covered event, such as an accident, a theft, or a natural disaster. However, it won’t cover damage caused by normal wear and tear.

Do I need special insurance to cover my home charging station?

You probably don’t need special insurance to cover your home charging station. However, it is worth checking with your homeowners insurance provider to find out if you are covered.

Are there special discounts for owning an electric vehicle?

There are government incentive programs that can provide discounts for owning an electric vehicle. Research what’s available in your area before you make a purchase.

How does insuring a Tesla compare to other EVs?

Teslas may have a higher purchase price than other EVs. As a result, the cost of insuring them may also be higher.

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photo credit: iStock/3AlexD
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Understanding your homeowners insurance is important, especially when damage occurs from something as serious as a fire. The good news is that there are many instances when fire damage is covered by standard policies. But there are also some exceptions to getting your claim approved.

What Does Homeowners Insurance Cover After a Fire?

Most policies include damage caused by a fire. But what does homeowners insurance cover when you file a claim? There are actually three different parts of your policy you can access to get financial help if you’ve had a fire at home. Let’s take a look at each one.

Your Home’s Structure (Dwelling Coverage)

Your dwelling coverage covers the structure of your home, up to a limit listed in your policy. How the insurer estimates reimbursement for a claim depends on whether your policy is based on replacement cost or actual cash value.

•  Replacement cost: This coverage is more comprehensive because it covers the current cost to replace or repair your property without deducting for depreciation costs.

•  Actual cash value: This option, on the other hand, reduces your payout using depreciation. That means it accounts for the age and condition of the property, rather than the current price.

Dwelling coverage also pays for damage caused to attached structures like a garage. Usually the maximum coverage amount is 10% of your home’s dwelling coverage.

Your Personal Property and Belongings

All of the items in your home are also covered under your homeowners insurance policy — up to a limit, usually between 50% and 70% of your dwelling covered. So if the home itself is covered for $400,000, then your personal belongings likely have a limit between $200,000 and $280,000.

Note that there may be category limits for high-ticket items like jewelry, art, or collectibles. In order to fully insure them, you might need to get them appraised and purchase an extra policy endorsement.

Additional Living Expenses (Loss of Use)

Depending on the extent of fire damage in your home, it may be unsafe to stay there until repairs are completed. Typical homeowners insurance policies include additional living expenses (ALE) coverage, which pays for extra costs like hotels and meals, up to a limit.

How Do I File a Fire Damage Claim?

Your insurance provider may have different options available for filing a claim, such as on the phone, online, or through their mobile app. Follow these steps to help improve your chances of getting your fire claim approved.

Immediate Steps to Take After a Fire

Once the fire itself is addressed, take these actions to stay safe:

•  Protect open entries: Board up broken doors or windows. You could do this yourself if the fire only caused minor damage, or you may need to hire professionals if the fire damage is extensive or there are structural concerns.

•  Find a safe place to stay: It may not be safe to stay in your home if the fire was widespread and caused smoke damage.

•  Contact police: Consider contacting your local police to let them know you’re temporarily leaving the property.

•  Contact your insurance company: Once these immediate needs are taken care of, it’s time to start the claims process.

Documentation Needed for Your Claim

The claims process may vary depending on your insurance company. But you’ll likely need to submit the following types of documents in order to move forward with your claim:

•  Photos and/or video of the damage

•  Home inventory, if you have it

The more details you can provide, the better.

The Claims Timeline and Process

Here’s what usually happens once the insurance company has your claims information:

•  An adjuster is assigned to estimate the damage done to your home and personal property.

•  Your claim will be approved or denied.

•  The insurance company will let you know how much money you’ll receive to repair the home based on your coverage.

When it’s time to start the repair process, the insurance company may make payments directly to the contractor, or they could pay you directly to manage the repair process. If you have a mortgage, the lender may also be included in the process to make sure repairs are completed.

The timeline of approving or denying a claim varies by state, but usually you’ll hear back within two weeks. That said, it can take longer to receive your payout, and the insurer can request an extension if they need to investigate additional details surrounding the fire.

Recommended: Homeowners Insurance Guide

What Fire Damage May Not Be Covered

Damage caused by fire, lightning, and smoke are considered covered perils in most standard policies. But there are some common exclusions and other situations that may impact your eligibility.

Standard Policy Exclusions

Policy exclusions for fire damage usually include fires that are set intentionally or caused by an act of war. Check your specific policy to see additional details that may apply.

Wildfire Damage Considerations

Does homeowners insurance cover wildfires? It depends on your policy. Historically, wildfires haven’t been listed as an exclusion, but that has begun to change in areas that are prone to them. Consult your policy to find out if you’re covered.

Understanding Negligence vs. Intentional Acts

An intentional fire is set on purpose, but what about a fire caused by negligence? Whether a candle is left burning unattended or a kitchen fire spreads too fast, there are instances that aren’t purposeful but could have been prevented.

The good news is that fires caused by negligence are usually covered by homeowners insurance. But it’s up to your insurer to determine what’s considered negligence and what’s gross negligence. For instance, a claim that involves faulty wiring you ignore and then ignites your home may be ruled as gross negligence — and may not be covered.

Understanding Your Fire Coverage Limits and Deductibles

Home insurance does cover fire in many cases, but how much money can you actually expect to receive from your insurance company? Several factors will influence your claims payout, such as the type and coverage limits of your policy, the cause and extent of the fire damage, and your adherence to the claims process.

How Your Coverage Limits Are Determined

You can choose how much coverage you want on your home. Your premium will cost more for a higher level of coverage, but you’ll receive better reimbursement in case a major event like a widespread fire occurs in your home.

When estimating the cost to rebuild your home, consider factors such as:

•  Size of your home

•  Attached structures

•  Quality of materials used in your home

•  Local labor costs

The Importance of Reviewing Your Limits Annually

As inflation causes the price of materials and labor to increase each year, it’s smart to regularly review your policy limits. Consider increasing your coverage in increments to keep up with rising costs. Alternatively, you can purchase an inflation guard clause as an addition to your policy.

Another option is extended replacement cost coverage, which pays extra money above your standard coverage in case a region-wide disaster causes prices to skyrocket due to increased demand.

How Your Deductible Affects a Fire Damage Claim

A deductible is an important homeowners insurance term to understand. It’s the amount of money you must pay out of pocket towards your repair or replacement costs for an approved claim. The most common type is a fixed deductible (usually between $100 and $5,000), but you may see a percentage of the home’s insurance value instead.

Recommended: How to Buy Homeowners Insurance

The Takeaway

Finding the right homeowners insurance coverage is important to protect your finances from major events like fire damage. While home insurance typically covers fires in many cases, the amount of your claims payout will be influenced by several factors. These include your policy’s type and coverage limits and the severity of the damage.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

Is my personal property covered at replacement cost or actual cash value?

It depends on your individual policy. Find this information by looking at a copy of your full insurance policy under personal property coverage. Contact your insurer if you can’t find a copy.

What’s the first thing I should do if my house has a fire?

The first step is to evacuate your home and call 911 to get help from your local fire department. Make sure you and your loved ones are safe and get medical help if necessary. Once the fire is contained, the fire department can help you figure out whether or not your home is safe to enter and stay in.

Are wildfires covered by homeowners insurance?

Does home insurance cover forest fires and other wildfires? It varies by policy. There may be a wildfire exclusion if your area is particularly prone to this type of disaster.

How does my deductible work for a large fire claim?

Your deductible is subtracted from the payout once your claim is approved. It doesn’t matter if you’ve already had claims during the year — deductibles apply to each individual event.

If I accidentally cause a house fire, am I still covered?

In many cases, accidental fires are still covered by homeowners insurance. The exception is if the fire was caused by gross negligence.

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photo credit: iStock/f00sion
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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This content may include information about products, features, and/or services that may only be available through SoFi's affiliates and is intended to be educational in nature.

Tree removal may be covered by homeowners insurance in some situations, but not all of them. It depends on why the tree fell and whether any property damage occurred.

Here is a detailed breakdown of when you can get tree removal covered by your insurer and when you’ll be financially responsible on your own.

When Does Homeowners Insurance Cover Tree Removal?

Let’s take a look at how homeowners insurance covers tree removal in different scenarios.

Debris Removal After a Covered Peril

Standard insurance policies do not usually cover tree debris removal alone. There needs to be some other type of covered damage in order to successfully file a claim. You can, however, purchase additional insurance coverage specifically for trees and bushes.

When a Fallen Tree Damages a Covered Structure

When a healthy tree falls during a covered peril — think a windstorm, fire, hail, vandalism, or weight of snow — removal is usually covered by your homeowners insurance policy. But insurers expect you to keep up with proper maintenance of trees and other plants on your property. If a dead or rotting tree falls and hits a structure, removal (and any damage caused to your home or other personal property) won’t be covered.

When a Fallen Tree Blocks a Driveway or Access Ramp

Can home insurance cover tree removal when the debris is blocking access to the home? Yes, in many cases, this situation is covered. Generally, if the tree is blocking a driveway or handicap ramp, you can file a claim and have the debris removed.

How Do I File a Claim for Tree Damage and Removal?

Follow these steps to file a claim with your insurance company after a tree causes damage on your property.

Immediate Steps to Take

There are two things you need to do right away to make sure your home is safe and that the damage is properly documented for your insurance company.

•   Perform a safety check: Ensure your family and pets are safe. If the tree fell on your home, stay away in case there is structural damage. Check for downed power lines, and report the incident to 911 and your utility provider. Then, gauge the damage to see if it’s safe to stay in your home or if you need to go elsewhere for the time being.

•   Take pictures and videos: Once immediate safety needs are taken care of, it’s time to contact your insurance company. Record as much of the damage as you can using photos and video.

Documentation Needed for Your Claim

The main documentation you’ll need is photographic evidence of the fallen tree. Be sure to take photos from multiple angles, especially if the tree is covering a structure or access areas, like a driveway or entrance to the home. Also include inventory of any damaged personal property you want to include in your claim.

The Claims Timeline and Process

The timeline for a tree debris removal claim varies depending on your insurer and the extent of an investigation they require.

In terms of process, expect an adjuster to be assigned to your claim. This professional will assess the damage and determine whether or not the tree debris removal (and any property damage) is covered by your policy.

Recommended: Homeowners Insurance Guide

What Tree Removal Costs Are Not Covered?

There are several scenarios when your insurance policy likely won’t cover any tree removal costs.

Standard Policy Exclusions

Some natural disasters and other factors are excluded from standard home insurance policies. In these cases, any fallen tree and resulting damage would usually not be covered unless you have a separate policy or endorsement.

When you’re buying homeowners insurance, take note of the standard policy exclusions, such as:

•  Earthquakes

•  Floods

•  Pest damage

Removal of Standing Dead or Diseased Trees

Homeowners insurance typically doesn’t cover any type of preventive removal of trees, even if those trees are diseased or dead. This is considered home maintenance and is something you’re financially responsible for as a homeowner.

Trees That Fall Without Causing Damage or Blockage

As mentioned earlier, your home insurance policy likely won’t cover tree removal unless the tree has caused damage to a structure or is blocking some type of access on your property.

Understanding Tree Removal Limits and Deductibles

Even when tree removal falls under a covered event, there are some limitations to keep in mind. Let’s take a look at some of them.

Standard Sublimits for Tree Debris Removal

Tree debris removal is covered by home insurance in two parts, which impacts how much the insurer will pay.

When a tree falls on a structure or access point, it needs to be moved out of the way in order for repairs to begin. That falls under your dwelling coverage. But once it’s safely out of the way, it still needs to be removed from the property. Debris removal is subject to its own policy limits, usually between $500 and $1,000.

How Policy Limits Apply Per Storm or Event

One important homeowners insurance term to learn is the per occurrence limit. It means there is a limit to how much the insurer will pay for all claims related to a single event, such as a large storm.

This is different from your policy’s aggregate limit, which is the maximum amount your insurer will pay for all covered claims within one year.

How Your Main Deductible Affects the Claim

When filing a claim that includes tree debris removal, you won’t receive the full estimated amount. Your insurer will subtract your deductible before reimbursing you.

Your deductible is the amount you’re responsible for in each claim. Most homeowners insurance policies range from $100 to $5,000.

Recommended: Homeowners Insurance Costs Explained

The Takeaway

Home insurance can be a powerful financial resource, whether you’re facing tree debris or other damage to your home and property. Does homeowners insurance cover tree removal? In some situations, yes. But it depends on why the tree fell and whether it caused any damage to your property.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

What if my tree falls on my neighbor’s house (or vice-versa)?

Typically, the homeowner who experiences damage files a claim with their own insurance company, regardless of where the tree originally stood. So if a healthy tree from your yard falls on your neighbor’s house, they would likely be covered by their own policy.

If a tree from your neighbor’s yard lands on your property and causes damage, you would file a claim with your own insurance company. They may, however, try to collect reimbursement from the neighbor’s insurer. If they’re successful, you could get reimbursement for your deductible.

Does insurance pay to remove a dead or diseased tree before it falls?

No, removing dead or diseased trees, especially when they’re still standing, is the homeowner’s responsibility. It’s simply part of the home maintenance routine. And it’s an important part. Leaving those trees untended could lead to damage that also isn’t covered by your insurance policy.

How much will my insurance policy pay for tree removal?

Each policy has its own limits for tree removal for approved claims. Check the details to see the maximum reimbursement per event. In most cases, it’s between $500 and $1,000. Remember that you usually can’t get insurance to pay for tree removal if it didn’t block access to your home or cause damage to a structure.

Does my policy deductible apply to a tree removal claim?

Yes, your deductible does apply to a tree removal claim. If you’re getting a tree removed that is simply blocking a driveway and didn’t cause any damage to a structure, your deductible may end up being higher than the actual cost of removal.

If a storm knocks down multiple trees, are they all covered?

Typically, the debris removal limit applies to one tree, but your overall dwelling policy has a total limit for trees, shrubs and landscaping. In other words, the removal of multiple trees may be covered by your policy, but only up to the allowable limit.

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photo credit: iStock/SolStock
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Whether someone ransacked your home during a break-in or swiped valuables from your car, homeowners insurance can help you recover financially from the ordeal. In general, a policy will pay to replace stolen or damaged belongings and repair damages from the theft, up to your coverage limit.

As with other types of insurance, there are nuances to keep in mind. Let’s dive in.

What Does Homeowners Insurance Cover When Property is Stolen?

As we mentioned, standard homeowners insurance policies usually cover the cost of repairing or replacing personal property that was stolen from your home, outside your home, or from a car or storage unit. Here’s a closer look at each scenario.

Theft of Personal Property From Your Home

If belongings are taken from your home, your policy will typically pay for the cost of repairing or replacing them, up to a point. A homeowners insurance policy generally includes a percentage — often between 50% to 70% — for personal property coverage. So, for example, if your policy’s total dwelling limit is $500,000, you’ll have anywhere from $250,000 to $350,000 in personal property coverage.

Recommended: Homeowners Insurance Terms

Belongings Stolen Outside Your Home

Your homeowners insurance should also cover your belongings if they are stolen while outside of your home, including when you’re traveling. Personal property outside your home is usually covered up to 10 percent of your personal property coverage limit or $1,000, whichever is higher.

Items Stolen From a Car or Storage Unit

Many people may think theft from your car would be covered under your auto insurance policy, but it is actually your homeowners insurance that steps in here. While a comprehensive auto insurance policy can protect you if the car itself is stolen, it won’t help pay to replace personal property stolen from inside your car. This would fall under personal property coverage in a homeowners insurance policy.

Homeowners insurance should also cover theft of your personal property in a storage unit.

How Do I File a Theft Claim?

If you need to file a theft claim with your home insurance, be sure to check out your homeowners insurance guide and follow the company’s protocols. These steps can also help.

Immediate Steps to Take After a Theft

First thing first: Ensure that you — and the remainder of your belongings — are safe. Then, call the police to file a police report for theft. You should also take pictures of the area, start making a list of all stolen property and start gathering necessary documentation.

Documentation Needed for Your Claim

Your insurance company will likely require proof of the theft, and a police report can serve that purpose. Any other documentation you have, like appraisals, pictures of the items or other proof, should also be submitted with the insurance claim.

The Claims Timeline and Process

The claims process usually begins with documenting the damage and stolen property, and reporting the incident to your insurance company. The insurer will likely assign an insurance adjuster to assess the damage, review the policy, and provide a settlement estimate.

You will receive payment for the approved amount, minus your deductible. Keep in mind that It can take weeks or months to fully resolve a claim, depending on the company, the complexity of the claim, and the location of the claim.

Recommended: How to Buy Homeowners Insurance

What Theft May Not Be Covered?

Not all theft will be covered by homeowners insurance. Most standard homeowners insurance policies have standard policy exclusions. Theft from a home under construction and theft by a resident of the household, for example, are generally not covered by homeowners insurance. Let’s take a closer look at both scenarios.

Standard Policy Exclusions

Most policies have sub-limits for expensive items like jewelry, furs, firearms, art, or collectibles. Coverage for cash, checks, or money orders that are stolen from your home is also often limited or excluded, as are items used for business purposes.

Most policies also will not cover theft resulting from negligence (like leaving your doors unlocked) or for losses that occur when the home is left vacant for extended periods (like if you reside in a second home for part of the year).

Theft from a Home Under Construction

Standard homeowners insurance policies usually do not cover theft from a home while it is under construction. You can get a “Home Under Construction” rider to your homeowners policy if you have a short term home construction project. A Home Under Construction rider covers losses from such perils as fires, storms, burst pipes, and theft.

If you are building a new home or have a longer construction period, you will need to get a separate builder’s risk policy during construction.

Theft by a Resident of the Household

Homeowners insurance likely will not cover theft committed by a resident of the insured’s own household. Insurance policies are designed to protect against theft by outside parties, so someone living in your household would typically be excluded.

Understanding Your Theft Coverage Limits and Deductibles

Homeowners insurance should cover theft, but how much it actually covers is determined by your policy’s theft coverage limits and deductibles.

Your Overall Personal Property Limit

Your overall personal property limit is usually a percentage of your dwelling coverage. This will vary by policy and is determined partly by whether you have an actual cash value or replacement cost value policy.

Replacement cost value is the amount it will take to replace your personal property without any deduction for depreciation of the items. Actual cash value is the replacement cost value amount, minus depreciation.

Special Sublimits for High-Value Items

If you have high-value items, you may want to consider supplementing your coverage. Scheduled personal property coverage covers expensive items, collectibles, or antiques. Some high-value items, like jewelry, have special sublimits due to their likelihood to be stolen.

If you have a high-value item that you want scheduled under insurance, you’ll need to have it appraised. Scheduling may expand the range of events you are covered for and often includes replacement should you lose the item. Common coverage sublimits are usually capped at $1,000-$2,500 for jewelry or watches, $2,000 to $3,000 for firearms, $2,500 silverware, and $200-$500 for coins and precious metals.

How Your Deductible Affects a Theft Claim Payout

As we discussed, once your claim is approved, you will receive a payout for the cost of the stolen items, minus your deductible. If you have an actual cash value policy, the payout will also subtract the depreciation amount from your payout.

Your homeowners insurance rate may increase after you successfully file a homeowners insurance theft claim. The severity of the claim can impact the amount of the increase.

The Takeaway

No one wants to experience theft, but thankfully you should have some coverage if you have homeowners insurance and the circumstances meet the included criteria. Theft coverage is something that to consider when you’re comparing homeowners insurance policies. There may be nuances with each policy, but an agent can walk you through the details.

If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

Is my property covered if it’s stolen from my car or while traveling?

Generally speaking, your personal property is covered by your homeowners insurance if it is stolen from your car or while you are traveling.

Are expensive items like jewelry or firearms fully covered against theft?

Expensive items like jewelry or firearms are usually not fully covered by standard homeowners insurance against theft. Most homeowners insurance policies have sub-limits that place a low maximum payout on theft of valuables.

If you want protection against expensive items, you should purchase additional coverage through an endorsement or a separate insurance policy.

What’s the difference between replacement cost (RCV) and actual cash value (ACV)?

Replacement cost value is the amount that it will take to replace your personal property without any deduction for depreciation of the items. Actual cash value is the replacement cost value amount, minus depreciation.

Do I need a police report to file a theft claim?

Yes, you’ll likely need a police report to file a theft claim with your homeowners insurance. Your insurance company may require proof of the theft, and a police report can serve that purpose.

Will my rates go up after filing a homeowners insurance theft claim?

Your homeowners insurance rate may increase after filing a homeowners insurance theft claim. The severity of the claim can impact the amount of the increase.

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photo credit: iStock/KatarzynaBialasiewicz
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Your homeowners insurance doesn’t just protect your home — it may also offer some protection for your belongings stored in a storage unit. That coverage can provide peace of mind if you’re storing valuables off site. But it’s important to know that coverage may be limited and might not cover everything in your storage unit.

How Homeowners Insurance Covers Items in a Storage Unit

Most standard homeowners insurance policies cover a portion of your belongings while they are in a storage unit. The insurance coverage limit for your belongings in storage is usually a set percentage of your homeowners insurance policy’s personal property coverage limit.

Off-Premises Personal Property Coverage

It’s common for homeowners insurance policies to include off-premise personal property coverage, which can be applied to items in storage. However, you can usually only claim up to 10% of your personal property coverage amount.

For example, if you have $100,000 in personal property coverage for valuables inside your home, then your policy would generally cover up to $10,000 for belongings in your storage unit.

Protection Against Covered Perils

If your homeowners insurance covers items in a storage unit, there will usually be covered perils and uncovered perils. Insurance will likely cover damage done to items in a storage unit from theft, vandalism and weather events. However, if your possessions are damaged by mold or mildew while in a storage unit, your homeowners insurance may not cover the cost.

Coverage for Your Belongings vs. the Unit Itself

Homeowners insurance covers belongings stored in a storage unit but it doesn’t extend to the storage unit itself.

Recommended: Homeowners Insurance Terms

How do I File a Claim for Items in a Storage Unit?

Figuring out how to buy homeowners insurance is one important process for homeowners to understand. Learning how to file a claim is another. Here are some steps to keep in mind.

Immediate Steps to Take After Damage or Theft

If you notice belongings are destroyed or missing from your storage unit, alert the manager or security at the storage facility. They can secure the area and help protect it against further damage or theft.

If someone broke into your unit, report it to the police as soon as you can.

Documentation Needed for Your Claim

Your insurance company will probably require pictures of the damage or theft for your claim. You should also make a list of whatever was destroyed or stolen and provide their proof of value, if possible.

If your storage unit was broken into, you may also be asked to provide a screenshot of the security footage at the time of the break-in. The storage facility can provide that to you, along with paperwork and information needed to file a claim. Also get a copy of the police report, if you filed one.

Before submitting your claim, review your plan’s terms and conditions. A homeowners insurance guide can help you fully understand your policy.

The Claims Timeline and Process

Once the claim is submitted, your insurance company may assign an adjuster to work with you. Be sure to provide any documentation they request — it will help keep the process moving along. Note that claims can take anywhere from a few days to a few weeks to be processed, depending on their complexity.

What Is Not Covered in a Storage Unit?

Your homeowners insurance policy probably doesn’t cover everything in a storage unit. Here are some common exceptions.

Common Excluded Perils

Home insurance may exclude certain perils that can destroy whatever belongings you have in a storage unit. For instance, mold and mildew due to poor ventilation are often not covered under standard homeowners or renters insurance policies.

Other commonly excluded perils include flood or earthquake damage, damage from pests, and theft without forced entry.

Business Inventory or Property

Most homeowners insurance policies will not cover business inventory or equipment that is stored for sale or distribution within a storage unit. If you’re keeping items for a business in a storage unit, consider getting a separate business insurance policy or a business property endorsement.

High-Value Items Beyond Their Special Limits

If you are storing high-value items like art, jewelry, collectibles, or antiques in a unit, you may want to add scheduled personal property coverage to your homeowners insurance policy. This will cover the full value of your belongings without a deductible. However, note that you will likely need to get appraisals for any items you want insured.

Understanding Your Storage Unit Coverage Limits and Deductibles

Before filing a claim, it’s important to understand your storage unit coverage limits and deductibles.

The Off-Premises Coverage Sublimit

Most homeowners insurance policies have an off-premise coverage sublimit. This is the maximum amount the insurance company will pay for a specific type of loss. Off-premises coverage for valuables in a storage unit is usually limited to 10% of your personal property coverage.

Special Sublimits for Valuables

Oftentimes, homeowners insurance policies have special sublimits for certain high-value items. These sublimits cap the amount of money your insurance company will pay for a loss of those items, regardless of their actual value or your overall personal property coverage.

How Your Deductible Affects a Storage Unit Claim

A deductible is the amount that you pay towards a covered loss before your insurance company kicks in. Choosing a higher deductible may lower your premiums. However, you could end up paying more in upfront costs if you file a claim.

Recommended: Homeowners Insurance Costs Explained

The Takeaway

Does homeowners insurance cover storage units? Generally speaking, it does. Most policies will provide off-premise coverage for your personal property, which includes storage units. However, you may only be able to claim a percentage of your personal property coverage amount. Review your policy to make sure you have the right amount of protection in place.

If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

How much are my belongings in storage covered for?

Belongings in storage are usually covered for a percentage of your personal property coverage, often around 10%.

Do I need to buy the insurance offered by the storage facility?

It depends. If you already have homeowners or renters insurance, your policy may already provide off-premise coverage for your personal property. You could also purchase a separate storage unit insurance policy from an independent insurer. If neither of those options work for you, you may decide to buy insurance from the storage facility.

Are my items covered against all types of water damage in storage?

Items in storage units are probably not covered against all types of water damage. Water damage for events like mold, flooding, or water damage due to poor maintenance are often not covered under standard homeowners or renters insurance policies. If you want to protect yourself against all types of water damage, you can purchase additional coverage.

Does my home insurance deductible apply to a claim for items in storage?

Your homeowners insurance deductible usually applies to a claim for items in storage under off-premises personal property coverage.

What should I do before putting valuable items into storage?

Before putting your valuable items into a storage unit, you should clean and dry all items properly and thoroughly. Dirt can contribute to the breakdown of certain materials over time, and not properly cleaning and drying items can lead to mold or mildew. It’s also a good idea to carefully wrap delicate items and cover furniture.

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photo credit: iStock/imaginima
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-019

Read more