DOES RENTERS INSURANCE COVER THEFT? Explained!

Renters insurance often includes personal property coverage, which can reimburse you for lost or stolen possessions up to the policy’s limits, less any applicable deductible. Theft from a car, a storage locker, or a vacation destination are all frequently covered by renters insurance. Read further to learn more about whether renters insurance covers theft while traveling. Enjoy the ride with me!

What Is Renters Insurance?

Theft, property damage (including fire damage), and liability for injuries sustained by guests are all things that renters insurance can help with. There are three primary categories of coverage for renters insurance:

#1. Coverage for personal property

This insurance covers loss or theft of your personal property as well as damage from explosions, fires, tornadoes, vandalism, and other events.

#2. Liability coverage

Should a visitor sustain injuries while on your property for which you are legally liable, such as in the event of a slip-and-fall, liability insurance will cover the cost of their medical care. If your dog bites a neighbor, for example, it also covers the harm you do to their property.

#3. Additional living expenses

Also known as “loss of use,” this covers additional costs like lodging and dining out if an insured event, such as a fire, prevents you from living at home.

Liability, extra living expenses, and personal property are the three primary coverage categories for renters insurance. The personal property portion of your coverage would pay for the stolen goods in the event that a criminal broke into your house.

Personal property coverage is often covered by renters insurance; this should assist you in replacing items that are taken from your house. The greatest renters insurance plans can also protect your possessions against theft if they happen anywhere other than your house, such as your car, hotel room, or even an off-site storage facility. Policies will vary, though, in terms of the precise coverage they offer.

Replacement Cost vs. Actual Cash Value

You can choose between having your personal possessions fully replaced by your renters insurance or having their current cash value fully covered. Your policy’s declaration page should specify the insurance company’s preferred method of valuation. This is an explanation:

#1. Value of replacement costs (RCV)

If the insurance provider covers your possessions at RCV, they will repay you for the current retail price you would have to pay to replace them. This means that the reimbursement will not take into consideration the depreciation of the value of the stolen goods; rather, it will cover the full cost of the new things.

#2. Actual cash value (ACV)

The insurance provider will only pay you back for the current, depreciated value of the stolen goods if your possessions are insured at ACV. This implies that the payoff will probably be less than what you would need to buy new stuff. The difference in price between paying an ACV premium and having RCV coverage in a renters policy is usually negligible.

Limitations and Deductibles

Insurance benefits will also differ based on your coverage limitations and deductible.

#1. Deductible

This sum is what you have to pay before your insurance starts to work. The insurance company will pay the ACV or RCV less any $250 deductible if your policy has one.

#2. Limits on coverage

This is the highest sum that your insurance will cover. No matter the ACV or RCV of your possessions, you won’t get more than the $5,000 personal property limit on your renters insurance. Your policy may have a coverage limit for every particular item in addition to a total limit. We refer to these as sub-limits. To have your insurance cover pricey objects like jewelry, gadgets, and artwork, you might need to add endorsements.

When Does Renters Insurance Cover Theft?

Personal property stolen from a location other than your residence is typically covered by renters insurance. The following are some instances of what your policy might include:

Items taken or damaged during a break-in at home
Items pilfered from your vehicle
Things kept in a storage facility off-site
Things that were in your car when it was taken may also be covered by your auto insurance.
Items pilfered from your lodging while traveling
Items taken by pickpockets
A bike taken from a communal bike rack
Stolen money, up to a predetermined sum
Items taken from a common laundry room or laundromat
Things that a roommate took, if they face criminal charges

Remember that this is not an exhaustive list. Most thefts of personal goods are covered by your renters policy up to the policy limitations, unless otherwise noted.

When Theft Is Not Covered

It is true that renters insurance often has a few notable exclusions concerning theft. Some things that your coverage might not cover are:

Things taken from a storage facility
Checked luggage
Theft of automobiles and other vehicles
Over $200–$250 in pilfered money
Items that when stolen were in the custody of a third party
Conditions when your carelessness made theft possible
Things pilfered during a civil lawsuit

To guarantee complete coverage for valuable objects like jewelry or collectibles, or to protect your bicycle, you might occasionally need to buy a specific endorsement or rider. When moving or storing your things, your renters policy might or might not cover them.

After a Covered Theft, How Do I Receive My Money Back?

If your renters insurance covers theft, you need to file a claim with your company to get your money back. The steps to file a claim are as follows:

#1. Report the offense

Usually, all you have to do is dial the police department’s “non-emergency” line. Only make an emergency call to 911. Save copies of the police report as soon as you report the offense. This paperwork will probably be required later on to complete your insurance claim. It is also advisable to notify your landlord about the theft.

#2. Create a list

Find out precisely what was taken. If you have already made a house inventory with pictures, particularly in the event of a home burglary, this stage will go more smoothly.

#3. Compile supporting documents

You could also require pictures or invoices attesting to the stolen goods in addition to the police report. Information about an item’s age, model number, and purchase price could also be required by the insurance provider.

#4. File a claim

Most insurance providers offer an online form for filing claims. Filing a claim in person with a local agent, via phone, or via an app may also be options.

#5. Attend to inquiries

The insurance provider can get in touch later and ask for more proof. It’s best to respond to these inquiries as soon as possible to prevent refund delays.

#6. Follow up on your assertion

Take the initiative to inquire about the progress of your claim. You may follow your claim via the app or website of many providers. As an alternative, you can speak with the claims division directly.

The insurance provider will start the evaluation process as soon as it receives your claim. This could entail looking into the claim, estimating the harm, and getting records. Upon completion of this review, the insurance provider will get in touch with you to discuss its choice. The business will make arrangements for payment if your claim is accepted.

How to Prevent Burglaries

Renters insurance is preferable if you never need to use it, even though it can offer peace of mind and financial security. Thankfully, a few easy safety measures can prevent a lot of break-ins.

First, you might want to think about getting a home security system. For preventive measures like burglar alarms and smart home technology, several insurance providers provide discounts. Before installing any security equipment that needs to be hardwired or permanently placed, check with your landlord.

Remain alert, whether you are traveling or at home. Lock up your windows, doors, and cars. Keep your distance from strangers, especially if they ask to enter your house. If a maintenance person unexpectedly turns up, give your landlord a call to confirm their qualifications. To spot someone who doesn’t belong, get to know your neighbors and their cars.

Lastly, assess your internet presence. Check your social media account’s privacy settings and exercise caution before posting anything online. Make sure your home location and phone number are private and avoid giving any hint that you are alone or away from home.

How Personal Property Insurance Covers the Cost of Replacing Stolen Items

Personal property coverage limits on renters plans often vary from $15,000 to $500,000. If you have $30,000 worth of personal property, for example, you need get at least as much in coverage (doing a house inventory may help establish how much coverage you need). Your renters insurance policy’s premium may vary depending on the level of personal property coverage you choose. To determine how much coverage you need for your personal belongings, use our handy calculator.

Your renters insurance policy should reimburse you for the item’s actual cash value (ACV) if you file a theft claim and it is approved. You might be able to get replacement cost value coverage (RCV) for an extra premium, depending on your insurer. RCV pays the full value of your item, depreciation included. For instance, the ACV of a TV you paid $750 for three years ago might only be $400. A new TV of similar quality would cost you about what RCV would pay you.

When Theft Occurs Outside of Your House, is it Covered By Renters Insurance?

When you’re away from home, many insurance companies will cover theft (up to certain coverage levels). Indeed, to the extent permitted by your policy’s limits, less your deductible, your belongings may be protected against theft while you’re away on vacation, during a move, and in storage.

Does a Break-in Result in Broken Windows Under Renters Insurance?

If your landlord has landlord insurance, they will be able to pay to fix or replace any broken windows in the rental unit or home.

Are Car Thefts Covered by Renters Insurance?

Renters insurance does not cover theft of motor vehicles such as cars, motorcycles, RVs, boats, or any other type of motor vehicle. To protect yourself against motor vehicle theft, you must have separate insurance coverage tailored to your car. However, depending on the terms of your policy, renters insurance may reimburse you for stolen belongings from your vehicle, less any applicable deductible.

Does Car Damage Resulting From Car Theft Fall Under the Purview of Renters Insurance?

Renters insurance does not cover damage to your vehicle. Your renters insurance may, however, cover any personal items that are stolen from your car. For instance, your car insurance may cover the shattered glass and your renters insurance may cover the stolen laptop in the event of a car break-in. Find out more about theft and auto insurance.

How Much Theft Coverage Do I Need on My Renters Insurance?

With renters insurance, you get to choose your own personal property coverage amount. One great tool for figuring out how much coverage you need is a house inventory. After estimating the worth of your personal property, you’ll decide on the level of coverage.

For instance, you may choose $30,000 in personal property coverage if the estimated value of your goods is $28,000. High-value things, such as jewelry, should be scheduled as personal property so that you can be compensated for their full value in the event that they are stolen.

Does Renters Insurance Cover Theft or Damage to the Tenant?

Renters insurance covers emergency medical costs for visitors, personal liability damages, damage to or theft of personal goods, and additional living expenses in the event that you must temporarily relocate.

Can Renters Insurance Protect Against Theft When Away From Home?

Whether you’re at home, on vacation, or commuting to the grocery store, renters insurance can shield your personal property against theft.

What Coverage Does Renter’s Insurance Offer?

Most of the time, renters insurance protects your possessions from common dangers like loss, fire, theft, and more. It’s a sensible strategy for safeguarding your personal property investment. Renters insurance also covers the theft of your possessions while traveling.

Is Identity Theft Covered By Renters Insurance?

It’s frequently less expensive to add identity theft insurance to your current renters insurance policy than to go out to dinner with friends or family! Even though identity theft insurance is crucial, setting up a credit monitoring service should help you stay out of trouble if you ever need to use it.

Does Car Damage Result From Theft of a Car Fall Under the Purview of Renters Insurance?

Damage to your car caused by a break-in, such as smashed windows or locks, is not covered by renters insurance. The comprehensive insurance section of your coverage covers theft and other issues, including vehicle damage from break-ins.

Does Theft of a Bicycle Go Under Renters Insurance?

You might be covered up to the policy limits less your deductible if your bike is stolen from your garage, a nearby park, or pretty much wherever else you ride it. In order to insure your bike, some insurers can require you to pay an additional premium to add an insurance rider to your renters policy.

Are Cash Thefts Covered By Renters Insurance?

Theft of cash is frequently covered by renters insurance, but only up to a particular level (often a few hundred dollars). There are frequently explicit “sub-limits” on your policy for valuable things, including cash, jewels, engagement rings, furs, and firearms. A limit inside another limit is known as a sub-limit. The personal property limit of your insurance might be $35,000, but your cash sub-limit is probably not going to go over $250.

Are Laundry Thefts Covered By Renters Insurance?

The clothes you own, from your underwear to your winter coat, are protected against theft by renters insurance, up to the limits of your policy and less any applicable deductibles.

Final Thoughts

Most of the time, yes. Renters insurance, even the cheapest ones, will cover theft. Renters insurance usually covers theft that happens outside of the residence, including items taken from your car’s trunk or stolen laundry, in addition to break-ins and burglaries within your house. Nevertheless, each policy may have different specifics. Find out if there are any restrictions or exclusions in your policy’s fine print.