Home Owners Insurance: Does it Cover Break-Ins and Theft?
Home Owners Insurance: This has been at a high rate in the United State. Burglaries are more common than you might expect. This is where home insurance comes in. Home insurance covers theft in the house.
However, the extent of your coverage depends on the type of insurance policy that you have and your coverage limits. As a general rule, homeowners insurance does provide theft coverage up to your policy limits.
If you are the victim of theft, whether it occurs inside or outside of your home, your homeowner’s insurance coverage can help you to replace your stolen possessions. Your policy can also help you to cover repairs to any property damaged by a thief or burglar. Here are the answers to your questions on homeowners coverage policies.
Most standard homeowners insurance policies, including renters and condominium policies, include coverage for the personal property inside of your home. As a result, loss due to theft is typically included as part of your personal property protection.
If an intruder steals valuables from your home or from structures on your property, such as a shed, a standard homeowners insurance policy should cover it. Many homeowners policies also include theft coverage for personal property that’s not in your home.
Personal property theft coverage limits are usually set as a percentage of the coverage for your home. This percentage determines how much your insurer can reimburse you for any personal property stolen during a burglary. However, damage to the structure of your home, such as broken windows or doors, would usually be covered under your general homeowners insurance policy instead of your theft coverage.
Who is Covered Under Your Homeowners Insurance Policy?
The legal owner or owners are the only people covered by the insurance policy. However, other insured persons may be covered by some provisions of the insurance policy, depending on the specific policy.
There are three types of coverage in a homeowners insurance policy: protection of the home, coverage for personal property, and liability coverage. The homeowners require all three types of coverage.
Non-owners of a home, such as minor children residing in a home, cannot insure property that they do not own. However, they may be considered “other insureds.” In many policies, minor children and other relatives residing in a home will be covered under the personal property and liability provisions of the policy.
Types of Theft Not Covered
Homeowners insurance covers most items that can be stolen from your home, with a few important exceptions. This includes items of extremely high value, such as cash or jewelry, along with vehicles, which must be covered through a car insurance policy.
For homeowners with expensive jewelry, art, coins, antiques or other prized possessions, a provision for additional coverage for high-value property may be appropriate.
In addition, home owners insurance does not cover the theft of a car. Although a car is personal property, it is insured separately. One exception is if you had items stolen out of your car. In that situation, you can file a claim for loss under your homeowners insurance policy.
Endorsements for Additional Coverage
If you have personal property that is particularly valuable, you may want to get a provision to add to your personal property coverage under your homeowners insurance coverage. This can include coverage for jewelry, electronics, computers or fine art.
In addition, to ensure that you have the best possible theft coverage, you may want to obtain an endorsement for personal property replacement cost. This endorsement will pay the replacement cost for your personal property without depreciation, so you will receive the full value to replace your stolen items.
A specific theft coverage endorsement may also provide additional coverage against theft of your personal assets. Homeowners should check with their insurance companies to determine what theft coverage endorsements are available to them.
Home Security Insurance Discounts
Home owners insurance is necessary, but it can be expensive. You can often lower the cost by taking steps to better secure your home and protect against theft. Many insurance companies offer discounts for securing your home. Discounts are offered for reasons such as:
Using deadbolt locks on your doors ranked “Grade 1” by the American National Standards Institute (ANSI)
Installing burglar alarms connected to local police
Installing motion lights around the outside of your home
While each of these items cost money to install, they may offer substantial savings over time in terms of lowered home insurance costs. Homeowners should contact their insurance agents directly to discuss potential discounts for home security upgrades.
If you have homeowners insurance, you likely have coverage for theft. Be sure to review your policy for exact coverage, and consider increasing your limits if you have any high-value items that may need additional protection.
Filling a Claim
Filing a claim seems like a good idea, especially if you’ve had a lot of valuables stolen. But there’s a big chance that filing a claim will increase your homeowners insurance premium.
Before filing a claim, do the math and see how much stuff you actually need to replace. If the thief stole some sentimental items that are irreplaceable, you may discover that there’s no point in claiming them and having your rates go up.
Don’t file a claim automatically. Take some time to think about what you need to replace.
Preparing for a Break-in
You can make your home safe by installing a security system, with a motion detectors and a fire alarm. Also adding a ring doorbell that shows a time video footage of anyone who rings the doorbell.
Having the right paperwork can make the replacement process more seamless. Your homeowner’s insurance will likely give you a discount on your premiums if you install a security system.The amount saved will depend on your insurance provider and what type of alarm you have.
You might not be able to stop a break-in from happening, but you can definitely lessen the stress of the experience.