Does Homeowners Insurance Cover Theft? | Openly

Peace of mind is a key benefit of homeowners insurance. It protects your investment against various perils, including theft. But understanding the extent of that protection can be confusing. 

This article aims to clarify homeowners insurance coverage for theft, guide you through the claims process, and ensure your valuables are adequately covered. 

At a glance: 

• Homeowners insurance typically covers theft, but there may be specified limits or caps on coverage amounts and exclusions for certain items like cash or valuables.
  

• Standard policies provide basic coverage, while more comprehensive ones may offer higher limits and replacement cost coverage.
  

• Choosing the right insurer is important. Consider factors like comprehensive coverage, competitive rates, customer service reputation, and financial stability.

Understanding homeowners insurance and theft coverage

Imagine coming home to find your front door kicked in and your belongings missing. It's a scary situation, but homeowners insurance can help ease the financial burden of theft. 

What homeowners insurance typically covers

Homeowners insurance is a financial safety net for your home, both the structure itself, as well as the contents you keep inside. This typically includes coverage for damage caused by fire, wind, hail, and theft. The specific types of coverage offered may vary depending on your policy and location, but theft protection for personal belongings is usually a standard feature.

Specifics of theft protection in home insurance policies

Theft protection in homeowners insurance policies generally covers the loss of personal belongings stolen during a burglary or otherwise. However, there are limitations and exclusions to be aware of, including the following: 

• Cash and valuables like checks and money orders are often excluded or have limited coverage under a homeowners insurance policy.
  
  
• High-value items like jewelry, artwork, or high-value collectibles may require additional coverage via an endorsement or rider to be fully protected in case of theft.
  
  
• Theft outside the home may be covered with limitations. Standard policies offer coverage for belongings stolen while traveling, but there might be a limit or cap on the amount reimbursed.¹

To avoid any surprises in the event you need to file a theft claim, it’s important to talk to your insurance agent about the details of theft protection, including limitations, exclusions, and coverage gaps.

Comparing policies: standard vs. more comprehensive coverage

Standard homeowners insurance policies offer basic theft coverage. However, if you own high-value items or want more comprehensive coverage, consider a policy that offers:

• Higher coverage limits for personal items, including valuables such as jewelry or artwork.
  
  
• Replacement cost coverage, which reimburses you for the current value of your stolen items, not just their depreciated worth, unlike standard policies which often operate on actual cash value coverage. 
  
  

Filing a claim for theft under homeowners insurance

The aftermath of a theft can be stressful, but understanding how to file a claim with your homeowners insurance can ease the financial burden. 

If you experience a theft, follow these steps to file a claim with your homeowners insurance company:

1. Contact the police—Notify the police before you do anything else. Make sure to obtain a copy of your police report for your insurance company as well.
   
   
2. Review your policy and contact your insurance provider—Take a moment to familiarize yourself with your homeowners insurance policy. Understand your coverage details, especially those related to theft claims, and contact your home insurance provider as soon as possible following a theft.
   
   
3. Document the loss—Create a list of stolen items, including descriptions of each stolen item (brand, model, color, etc.), purchase receipts, and photos, if available.
   
   

Practical tips for homeowners

• Don't touch the crime scene—Leave everything undisturbed until the police have completed their investigation.
  
  
• Keep all receipts for valuables in a safe place—A safe deposit box or fireproof safe are great options for storing important documents.
  
  

Documentation and proof of loss requirements

For your home insurance claim to be approved, your insurance company may require detailed documentation of your loss. This can include:

• Police report—This document verifies the theft and may be necessary for law enforcement purposes.
  
  
• Detailed inventory—A comprehensive list of the stolen items with descriptions, purchase dates, and estimated values.
  
  
• Proof of ownership—Receipts, appraisals, or photographs can provide evidence that you owned the items you claimed as stolen. 
  
  

What to expect after filing a claim

Once you submit a claim and the required documentation, your insurance provider may send an adjuster to assess the loss. If the claim is approved, you’ll receive reimbursement based on your specific policy’s limits and coverage type, such as replacement cost or actual cash value. Keep in mind that claims processing times can vary depending on the complexity of the case.

Impact of theft claims on insurance premiums

Filing a theft claim may potentially increase your future premiums. However, the severity and frequency of all your claims may play a larger role. It's important to weigh the cost of replacing stolen items yourself against the potential premium increase from filing a claim. Be sure to discuss this with your agent to make an informed decision.

Maximizing your theft coverage

Experiencing a theft at home can be devastating. Fortunately, homeowners insurance can help ease the financial burden of replacing stolen belongings. But understanding your coverage is critical. 

Reviewing and updating your policy regularly

Your life and needs change; so too should your insurance coverage. Regularly review your homeowners insurance policy, especially after major life changes like major purchases or renovations. This ensures your coverage reflects your current needs. We recommend scheduling annual reviews with your insurance agent to discuss any updates and ensure your coverage reflects your current situation.

Enhancing coverage with endorsements or riders

Standard homeowners insurance policies may not adequately cover high-value items like jewelry or expensive electronics. For peace of mind, consider adding endorsements or riders to your policy, which can provide:

• Increased coverage limits for specific categories like jewelry or collectibles.
  
• Scheduled personal property coverage for high-value items. This provides separate coverage with a dedicated limit for each item that you would receive in case of a covered theft.

Discuss these options with your insurance agent to determine what best suits your needs.

Preventive measures to reduce theft risk as a homeowner

While insurance provides financial protection, preventing theft is always the best defense. Here are some practical home safety measures you can take that may also favorably impact your insurance rates:

• Install a security system—Visible security systems often deter burglars and can potentially lead to discounts on your insurance premium.
  
  
• Secure your entry points—Consider adding deadbolts and reinforcing vulnerable areas like sliding glass doors.
  
  
• Improve outdoor lighting—Well-lit areas around your home discourage nighttime break-ins.
  
  
• Don't advertise your absence—Use timers for lights and blinds to create an illusion of occupancy when you're away.
  
  
• Get to know your neighbors—Build relationships with your neighbors and look out for each other's homes.
  
  

Choosing the right insurance partner

Finding the right homeowners insurance provider is key to protecting your home. The right insurance policy ensures you have the financial resources to rebuild after damage and replace what was lost. When choosing a homeowners insurance provider, consider the following factors:

• Comprehensive coverage—Not all policies are created equal. Look for an insurance provider that offers robust theft protection, including options for high-value items like jewelry or artwork.
  
  
• Competitive rates—Cost is important, but it shouldn’t be the only deciding factor in choosing a home insurance policy. Compare quotes from different insurance providers for the best coverage options and price that fit your needs.
  
  
• Customer service reputation—In an ideal world, you’d never need to file a claim. But in the unfortunate case you do, choosing a company known for a smooth and efficient claims process and excellent customer service can make a world of difference. Look for online reviews and testimonials that mention their customer service reputation, communication, and overall customer satisfaction.
  
  
• Financial stability—Ensure your insurance provider is financially secure and has the resources to fulfill their obligations in case of a claim. Research the insurance company’s financial ratings from independent agencies like AM Best. 
  
  

How Openly stands out in homeowners insurance

Openly excels in all these areas. We offer comprehensive coverage with high-value home insurance options and prioritize exceptional customer service throughout the claims process. Openly stands out in the homeowners insurance market by providing:

• Customizable coverage to fit your specific needs
  
• Transparent policies with no surprises
  
  
• Exceptional customer service 

Openly provides high-value home insurance that offers comprehensive coverage and goes beyond standard policies. We understand the importance of protecting your valuables and providing peace of mind in case of a break-in or other covered peril. And you can rest assured that Openly can fulfill its obligations in case of a claim, backed by carrier partners with “A” and “A-” AM Best ratings. 

Securing your home with the right coverage

Having a comprehensive homeowners insurance policy with theft coverage is crucial for protecting your investment and belongings. Openly can help you achieve that peace of mind. We offer tailored policies, excellent customer service, and the support you need to recover from a theft. 

Openly recognizes the need for comprehensive protection and offers high-value home insurance that caters to these needs. We can tailor a policy that provides adequate coverage for your specific situation.

Common questions about theft and homeowners insurance

Are all types of theft covered?

Homeowners insurance typically covers theft. Here's a breakdown of common theft scenarios:

• Burglary and Robbery—These are covered under most homeowners insurance policies.
  
  
• Theft from a car—This may be covered by either homeowners insurance or your auto policy, but could be subject to coverage limits.
  
  
• Lost items—Losing something differs from theft and usually isn't covered by homeowners insurance.

If you're unsure about a specific theft scenario, consult your home insurance agent for clarification.

Does homeowners insurance cover damage to your home caused during a theft?

In most cases, yes. This would fall under dwelling coverage and would help cover the cost to repair damage to doors, windows, or other parts of your home caused by the break-in.

Does the location of theft matter?

Theft coverage typically applies to belongings stolen from your insured residence or belongings stolen while traveling or at a secondary residence. The amount of coverage for theft off the residence premises may be limited.  

* We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions and coverage details.

¹  Stephanie Nieves. “Does home insurance cover theft outside your home?” Policygenius. Published 15 February 2022. Accessed 28 May 2024. https://www.policygenius.com/homeowners-insurance/does-homeowners-insurance-cover-theft-outside-the-home