Does Homeowners Insurance Cover Theft?

As a homeowner or business owner, you have reasonable concerns about theft. The security company ADT puts the total annual nationwide theft loss at more than $15 billion. As theft is widely believed to be systematically underreported, the true extent of theft losses may be far greater.

This raises an important question: Does homeowners insurance cover theft? The short answer is “it depends”—though most coverage does provide theft benefits. Here, our New Orleans theft claims attorney provides an overview of homeowners insurance coverage and theft losses.

What is Homeowners Theft Insurance?

Every homeowner should have a homeowners insurance policy. That policy will provide coverage to you and your family when certain covered perils cause significant damage. Notably, many homeowners’ policies include theft coverage. Indeed, homeowners theft insurance is considered to be a relatively standard component of these types of policies. They provide coverage for loss of personal property due to theft.

The insurance protects valuable items inside the home—such as electronics, jewelry, and other valuables. In some cases, homeowners theft insurance may also extend to personal belongings stolen from your car or while you are traveling. It typically covers the cost of replacing stolen items and, in some cases, may also cover damages to the home resulting from a break-in—such as broken windows or doors.

Claims Tip: Report theft right away. As a general rule, your insurance policy will require you to report theft promptly in order to file a claim. You may or may not be required to file a police report in order to make a homeowners’ insurance policy claim.

How to Determine What Items Are Covered Under Theft Protection

You may be wondering: What specific items are covered by my homeowners’ theft insurance policy? This depends on your policy. These are highly fact-specific cases. The precise language of your homeowners’ insurance policy will always matter. Here is a general overview of factors that will impact what items are covered by your theft protection policy:

• Your Policy Declaration: As a starting point, you should begin by examining the declaration page of your homeowners insurance policy. That section will outline what items are covered, including specific limits and any applicable deductibles.
• Understand Policy Limits and Exclusions: Each policy has limits on the amount payable for stolen items, and certain high-value items—like jewelry, art, etc—may actually have lower sub-limits unless additional coverage is purchased. Be aware of any exclusions or other limitations on coverage.
• Check for ScheduledItems: For items of significant value, insurers often require these to be listed separately with appraised values on a schedule (an itemized list attached to your policy). These scheduled items typically receive broader coverage.

Know the Most Common Limitations/Exclusions in Theft Coverage

One of the most important issues to be aware of in regards to homeowners theft insurance policies in the exclusions and any limitations on coverage. Indeed, exclusions/limitations can have a very big impact on your case. Here are some of the most notable exclusions and limitations to be aware of:

• Cash and Currency: Insurers often set very low limits for the theft of cash, checks, or currency. One big reason for this is that cash is difficult to trace and prove ownership and amount. Cash can be difficult to recover in a theft damage claim. If you have cash in your home, make sure you know your policy limit.
• Very High-Value Items: Items like jewelry, fine art, and collectibles often have sub-limits unless specifically scheduled with an additional premium. For example, a policy might limit jewelry theft recovery to $1,500—unless the items are appraised and listed separately. With very high-value items, it is best to try to get them listed in your insurance policy.
• Business Property: Property used primarily for business purposes—even if stored at home, typically is not covered under a homeowners policy. Business property requires separate coverage. In some cases, there can be questions if property is business or personal—such as for things like power tools for a contractor.
• Motor Vehicles: Theft of cars, motorcycles, and other vehicles is not covered under homeowners insurance. These items need to be insured under their respective auto or specialty vehicle policies. Notably, the exclusion of motor vehicles is broad and standard.
• Pets and Animals: Most policies exclude coverage for the theft of pets—which are often considered priceless personal assets rather than traditional property. A theft of a pet may not give rise to much of a homeowners insurance claim.
• Property of Others: While homeowners insurance might cover the belongings of guests or domestic employees, this coverage is usually limited and may not extend to all scenarios or items. It is not uncommon for disputes to arise in these cases.

An Overview of the Steps to Take to File a Theft Claim with Your Homeowners Insurance

Were you the victim of theft? Was property taken out of your home without permission? You may be able to get compensation through your homeowners’ insurance policy. It is imperative that you take immediate action to file your claim.

These are time-sensitive cases. Here are five key steps to take to prepare and file your homeowners’ insurance theft damage claim:

1. File a Police Report: After a theft, it is best to file an official police report. Indeed, after discovering the theft, you should contact the police to report the incident. Obtain a copy of the police report. That report will usually be required by your insurance company.
2. Notify Your Insurer: You should inform your insurer about the theft as soon as possible. Most policies have a time limit for reporting thefts. Do not miss your opportunity to bring a claim to get compensation through your homeowners’ policy.
3. Review Your Insurance Policy: Revisit your policy to understand the coverage limits, deductibles, and any specific requirements or exclusions that might affect your claim. Knowing the small details will make it easier to bring a claim.
4. Document the Loss: Create a detailed inventory of the stolen items. Include descriptions, approximate value, and any available receipts, warranties, or photographs. The more documentation you have, the better your chances of getting compensation for the full and fair value of your lost property.
5. Fill Out Claim Forms: Complete all the necessary claim forms provided by your insurance company. Be thorough and provide detailed information to avoid delays. You may need to submit the police report, inventory of stolen items, receipts, photos, and other documents.

Why Trust Our New Orleans Theft Claims Insurance Attorneys

For homeowners, a property theft insurance claim can be especially challenging. Unfortunately, too many insurance companies fight to limit or even deny coverage in these cases. They want to pay out as little as possible to policyholders. At Insurance Claim HQ, we are laser-focused on helping our clients secure the absolute maximum benefits. With a record of case results, our New Orleans theft damage lawyers are always prepared to go the extra mile. Your initial consultation is always free, strictly confidential, and carries no additional obligations.

Schedule Your Free Consultation With Our New Orleans Theft Claims Lawyers

At Insurance Claim HQ, our New Orleans theft claims attorneys provide justice-focused guidance and support to clients. If you have any questions or concerns about your options, we are here to help. Contact us today for your free, no-obligation case review. Our firm provides representation to homeowners in New Orleans and throughout the wider Gulf Coast region.