Renters insurance can help if your cash is stolen, but the payout may be limited. Most policies only offer a small amount of coverage for cash theft, typically a few hundred dollars. While that’s better than having no coverage at all, it’s a good idea not to rely on renters insurance alone to safeguard your savings.
Let’s break down how renters insurance handles stolen cash, what limits to watch out for, and how to protect your money in the first place.
Key Points
• Typical renters insurance covers stolen cash up to a few hundred dollars.
• Renters insurance covers personal property, liability, and additional living expenses.
• Keep emergency cash in a water- and fireproof safe.
• Report stolen cash to the police and insurance company promptly.
• Store most money in an FDIC-insured bank account for better protection.
When Does Renters Insurance Cover Cash?
In general, a renters insurance policy considers theft a covered peril. This means if someone swipes your wallet on vacation or walks off with your prized coin collection, your insurance company may cover your loss — up to a limit. As with other valuables, like jewelry, fine art, and firearms, insurance companies have lower coverage limits, known as sublimits, on cash.
How Much Stolen Cash Will Renters Insurance Cover?
Most renters insurance policies cover stolen cash up to a low limit — typically around $200 or so. In some cases, the limit might be even lower. That’s why it’s important to check your policy details, so you know exactly what and how much coverage applies.
Coverage Scenarios for Stolen Cash (At Home and Away)
Renters insurance can cover theft or stolen cash in certain situations, whether you’re at home or away. For example, if someone breaks into your rental and steals cash, your policy may reimburse you for the loss. But again, coverage is usually limited to a few hundred dollars.
If your cash is stolen while you’re out — such as from your storage unit or a hotel room — your policy may still apply under what’s called off-premises coverage. This typically covers up to 10% of your total personal property limit. You’re also usually covered if the cash was stolen along with other items, like if your bag containing cash, your phone, and other valuables was taken. In that case, your insurance may reimburse you for the total loss minus your deductible, up to your policy’s limits.
However, there are situations where stolen cash isn’t covered. If the amount taken from you is more than your policy covers, you’ll only be reimbursed up to the limit. Your claim may also be denied if you don’t have proof of the theft, such as a police report.
And if the cash simply goes missing or you can’t explain how it was lost, renters insurance likely won’t cover it, since most policies exclude what’s known as “mysterious disappearance.”
What Renters Insurance Does Cover (Beyond Cash)
Besides providing some coverage for stolen cash, renters insurance can also provide an affordable way to protect yourself in four key areas:
• Personal property coverage: This covers your belongings if they’re stolen or damaged by things like fire, smoke, wind, or theft.
• Liability coverage: If you, a family member, or even your pet accidentally injures someone or damages their property, your policy can help cover legal fees, medical bills, or repair costs — up to your policy’s limit.
• Additional living expenses: If a covered event (like a fire or major storm) forces you out of your home, renters insurance can help pay for temporary housing, meals, and other extra costs while you’re displaced.
• Medical payments: Let’s say a guest trips in your home or your dog bites them. Your policy may help cover their medical bills, even if you weren’t at fault. Just note that your policy doesn’t cover injuries to you, your family, or your pet.
Protecting Your Cash and Minimizing Loss
Here are a few practical tips to help you minimize the chance of someone stealing your cash:
• Keep some emergency cash in a safe place. Experts often recommend keeping a small amount of cash at home — usually just enough to get you through a day or two — in case of an emergency. Store your emergency cash in a water- and fireproof safe that’s easy to access in case you need to leave quickly.
• Use secure travel gear. If you’re carrying cash or valuables while out and about, consider theft-resistant products. For example, a money belt or a slash-proof pouch can help keep your belongings and money safe when you’re on the go.
• Make sure your money isn’t visible to others. Avoid leaving cash or valuables in plain view. If someone can’t see it, they’re less likely to steal it.
• Store most of your money in a bank account: While it’s smart to have a small emergency stash at home, the rest of your cash should be stored securely, like in a bank account protected by the Federal Deposit Insurance Corporation (FDIC). Bank accounts like high-yield savings accounts are usually insured up to $250,000 per depositor. Plus, you might even earn some interest.
What to Do If Your Cash Is Stolen
Here’s what to do if your cash — or anything else — is stolen:
• Make an official report with the police to back up your claim.
• Notify your landlord right away so they’re aware of the situation, especially if the incident took place in or around your rental property.
• Contact your insurance company as soon as possible to report the loss and find out what’s covered under your policy.
If cash was stolen along with other valuable items, such as your laptop, phone, or watch, you can file one claim for everything together. Just remember, your deductible will be taken out of the total amount you’re claiming.
On the other hand, if cash is the only thing that was stolen, it might not be worth filing a claim at all. Renters insurance only covers a small amount of stolen cash, and filing a claim — even just one — can cause your premium to go up. For example, if your deductible is $500 and you lost $700 worth of stuff, you’d only get $200 back. In a case like that, it might make more sense to skip the claim and avoid a higher premium later on.
The Takeaway
Does renters insurance cover theft of cash? If your money is stolen, renters insurance might reimburse you but only up to a limited amount. Most policies cap reimbursement for stolen money at a few hundred dollars, so while it’s helpful, it’s not meant to replace a large sum of savings. For that reason, keeping your cash in a more secure place, such as a bank account, may be a safer option.
To make sure you’re adequately covered, take a moment to review what your policy includes. If the coverage feels too limited, your insurer may offer add-ons or other options to help fill the gap.
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FAQ
How much cash does renters insurance typically cover if stolen?
Renters insurance usually covers stolen cash, but the payout tends to be limited. Most policies cap coverage at around a few hundred dollars, depending on your insurer. If you regularly keep large amounts of cash at home, consider storing it in a secure place or looking into additional coverage options.
Does my policy deductible apply if only cash is stolen?
The answer ultimately depends on your insurance company and the details of your policy. Some policies apply the deductible to all claims, while others only apply it to certain types of losses. If only cash is stolen, the amount is usually too small to exceed your deductible, so some insurers might waive it. But if the cash is part of a larger theft, like a break-in, your deductible would apply to the total claim. This could reduce how much you get back overall.
Why is the coverage limit for stolen cash so low?
The coverage limit for stolen cash is typically low because cash is hard to track and theft is tough to prove. Insurance companies may set low limits to help prevent fraud. After all, anyone could claim cash was stolen, and it’s difficult to verify. Keeping the limit small can help protect both insurers and honest policyholders.
Is cash covered if stolen outside my rental home?
Yes, renters insurance may cover stolen cash even if it’s taken outside your home — what insurers refer to as off-premises coverage. However, there are limits. Off-premises coverage typically only offers up to 10% of your total personal property limit. And since cash already has a very low coverage cap, the amount you’ll be reimbursed is likely to be small. It’s a good idea to check with your insurer to see what’s covered.
Are stolen gift cards or prepaid cards covered like cash?
Renters insurance may cover gift cards if they are stolen, but coverage tends to be restricted like it is with cash. Gift cards are often treated like cash, which means reimbursement is typically capped at a few hundred dollars. To know exactly what’s covered, check your policy details or ask your insurer directly.
Photo credit: iStock/Liubomyr Vorona
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