Does Renters Insurance Cover Theft or Stolen Items? Everything You Need to Know
If you rent your home or apartment, a renters insurance plan can help protect you financially in the event of theft. Even if the robbery happens outside your home, renters insurance could reimburse you for your stolen items, whether that’s computer gear, jewelry, or other costly possessions. Understanding renters insurance coverage, limits, and deductibles can help you choose a policy that fits your budget and guards against your possible losses.
Key Points
• Renters insurance typically covers the theft of personal belongings.
• These policies cover possessions stolen from inside or outside of the rental home.
• Very valuable items may call for additional protection through scheduled personal property coverage.
• When filing a claim, policyholders must provide proof of ownership and the valuation of the item.
• It’s easier to file claims later if you document your belongings with photos, videos, and receipts ahead of time.
How Renters’ Insurance Covers Stolen Items and Theft
Renters insurance plans cover stolen items as part of their personal property coverage. Your insurance will reimburse you for losses if your electronics, furniture, clothes, or other valuables are stolen or vandalized.
Your policy will have coverage limits for certain items and for the plan overall. It will also have a deductible, which you’ll need to pay out of pocket before you qualify for reimbursement. If you’re submitting a claim for stolen items, most renters insurance policies will require you to file a police report.
Typically, renters insurance covers your personal property if it is stolen from you either inside or outside your home.
For instance, usually renters insurance covers theft of items from your car. So even while you’re on vacation, your policy probably covers you if someone burglarizes your hatchback or hotel room. However, if your car is damaged or stolen in the process, renters insurance won’t cover that — only the belongings inside the car. Car theft is handled through your auto insurance coverage.
Understanding Replacement Cost vs. Actual Cash Value
When comparing your renters insurance options, you’ll see that some plans cover actual cost value (ACV) and others cover replacement cost value (RCV). Here’s the difference:
• Actual cost value: These plans will cover the current value of your items, taking depreciation into account. A computer that you bought for $1,000 five years ago, for example, may have an actual cost value of only $400 today. On an ACV plan, your insurance plan will reimburse the current value of $400, not the original value of $1,000.
• Replacement cost value: These plans will cover the full cost to replace your item without reducing the price to account for depreciation. For that $1,000 computer, the plan would reimburse you $1,000 (minus any deductible).
RCV plans offer better coverage, but they cost more. If your priority is keeping your monthly premiums to a minimum, an ACV plan may be the better fit.
Understanding Deductibles and Policy Limits
Renters insurance plans don’t always cover the full value of stolen items. That’s because policies come with both deductibles and coverage limits.
Renters insurance deductibles are the amount you have to pay out of pocket before the plan starts paying out. If someone steals your $700 television and your deductible is $200, for example, the insurance company will pay you $500. Deductibles on renters insurance typically range from $250 to $2,500.
Renters insurance plans also come with coverage limits. Total limits may range from $10,000 all the way to $100,000 or more. You can choose your limit when purchasing a plan, so take an inventory of your belongings ahead of time to help you calculate what it would cost to replace them.
Along with this total limit, your plan may have sub-limits for specific items. Renters insurance covers stolen cash, for instance, but only up to a few hundred dollars. Jewelry coverage may be limited to $1,500 or so.
If you have fine art, expensive collectibles, or other high-value items, you may want to add on supplemental coverage to increase your limits. Another option is to schedule personal property into your plan, which means insuring specific items, such as a $3,000 engagement ring.
Recommended: Does Renters Insurance Cover Roommates?
Preventing Theft at Your Rental Home or Apartment
If you’re concerned about theft, there are some steps you can take toward prevention:
• Install a security system with a burglar alarm, doorbell camera, or smart technology that will send you alerts in the event of a break-in.
• Put deadbolts on exterior doors, as well as locks on any windows and pet doors leading into your home.
• Avoid leaving spare keys outside your home; change the access codes on any home entry systems on a regular basis.
Not only will installing anti-theft devices help protect your home, but it may also score you a discount on your renters insurance policy. Read up on cyber security tips for other ways to increase your safety.
What To Do if Your Belongings Are Stolen
If your belongings are stolen, you’ll want to contact your insurer promptly. Some insurance companies require you to file a claim within 48 to 72 hours. Here are the steps you’ll need to take.
• File a police report: Report the crime to the police. Your insurance company likely requires a police report to process your claim.
• Make a list of your stolen items: Document everything that you can by writing down details of the items, taking photographs and, if possible, providing receipts.
• Submit your insurance claim: You may be able to file a claim online, over the phone, or via a mobile app. You’ll need to provide details about what happened and what was stolen from you.
• Receive reimbursement, minus your deductible: If your provider approves your claim, you’ll be reimbursed for your loss (after subtracting the amount of your deductible), up to your policy’s limits.
Throughout this process, stay in touch with your insurance provider about any questions you have or specific steps you need to take.
The Takeaway
After a burglary, fully replacing your stolen items may be impossible, but renters’ insurance can provide a measure of financial protection. Not only will renters insurance reimburse you for possessions taken from your home, but it can also cover the cost if your belongings are taken from your car or storage unit. Extra protection is available with supplemental or scheduled personal property coverage.
When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.
FAQ
Are my belongings covered if stolen while I’m traveling?
If you have renters insurance, your belongings will likely be covered if they’re stolen while you’re traveling. Renters insurance typically offers personal property coverage for items you own that are stolen from your home, car, or another location.
How much will insurance pay for my stolen items?
The amount that insurance will compensate you for your stolen items depends on the details of your plan. Total coverage limits typically range anywhere from $10,000 to $100,000, but double-check the details. Within your plan, certain item categories may have lower limits.
Is stolen cash or jewelry fully covered?
Most standard plans don’t fully cover stolen cash or jewelry. The coverage limit for stolen cash can be around $200 to $300, while the limit for jewelry may be about $1,500. However, you can buy supplemental coverage for valuables or schedule specific items, like fine jewelry, into your plan.
Does renters insurance cover theft of items from my car?
Renters insurance will cover items stolen from your car. However, it won’t cover the cost of repairing robbery-related damage to your car.
Is my roommate’s stolen property covered by my policy?
Your roommate’s stolen property is not covered by your policy unless their name is also on the policy. (Some experts recommend separate policies for each roommate to avoid complications.) However, your policy is likely to cover the possessions of family members you live with, such as your spouse, domestic partner, or minor children.
photo credit: iStock/bymuratdeniz
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