Does Theft Coverage Come With Homeowners Insurance?
Sep 27, 2022 By Susan Kelly

Most homeowners insurance plans often cover theft of personal property, such as clothes, computers, electronic equipment, and furniture. The coverage for your personal belongings also includes things stored in detached buildings on your land, such as a shed. Personal belongings taken from off-site storage facilities, hotels, or even your automobile are often covered under the standard homeowner's insurance policy, but with some exclusions.

In most cases, the minimum coverage for your personal belongings that an insurance company will provide is fifty percent of what it provides for your house. For instance, if a policy provides coverage for a house of $200,000, the insurance may also include personal property coverage in the amount of $100,000. However, the restriction on the value of your personal property might occasionally be adjusted to suit your requirements better. Take a thorough inventory of your personal things and calculate how much it would cost to replace them before purchasing a homeowners insurance policy.

Limits of Theft Coverage

Your insurance policy will contain a predetermined amount of coverage for your personal property, often equal to fifty percent of your coverage for your house. However, insurers have limitations on how much they will pay out for certain categories of personal property.

Limits for Certain Types of Personal Property

Your homeowner's insurance policy does not provide a level of coverage that is universally applicable to all of your personal items. Instead, it establishes restrictions according to the items that are lost or destroyed. Here is a sample of certain limits from a Nevada homeowners policy offered by The Hartford:

  • Banknotes and coins: $200
  • Furs, watches and jewelry: $1,500
  • Residential property used for business: $2,500
  • Firearms: $2,500
  • Trailers: $1,500
  • Goldware and silverware: $2,500

Even while many homeowner's insurance plans cover goods taken from off-premises places like a storage unit or hotel room, the amount that the insurance company will pay out may be limited to 10% of your total personal property coverage. Therefore, if a thief takes stored furniture worth $20,000 and your policy has a personal property coverage of $50,000, the insurance company will most likely only reimburse $5,000 for the loss.

Replacement-Cost Coverage vs. Actual Cash Value

Most regular homeowner's insurance plans reimburse the insured for the item's real monetary worth in the event of theft. The market value of an object, adjusted for its age and condition, determines its real monetary worth. This value declines over time due to depreciation. Therefore, if you purchased an area rug five years ago for the price of $1,200, the rug may only be worth a few hundred dollars now in terms of its real financial value. If you have replacement-cost coverage, on the other hand, you will cover a payment equal to the amount necessary to purchase a brand-new version of the lost item.

When a Homeowners Insurance Policy Does Not Pay for Theft

In most cases, insurance companies will refuse to cover stolen personal belongings from a house that has been empty for a certain amount of time. If you leave your house unoccupied for an extended period, such as to go on a vacation across the globe, and then return to find that all your belongings have been stolen, the insurance company may refuse to pay out your claim or even cancel your coverage.


The majority of ordinary homeowner's insurance plans do not cover losses of specific kinds of property, including the following sorts of items:

  • Aircraft and hovercraft
  • Credit cards
  • Pets
  • Business data
  • Rental equipment that is kept off-site for storage

Alternative Methods to Protect Against the Loss of Property Due to Theft

Because of restrictions placed on some categories of personal property, it's possible that some of your possessions won't be adequately covered by insurance. For instance, if you have a wedding ring with a value of $5,000 but the maximum coverage provided by your homeowner's insurance policy is just $1,500, you will need extra coverage.

Valuable Items Endorsements

You may add a rider to your homeowner's insurance policy that provides coverage for expensive things from several different insurance homeowners. This coverage is also known as "scheduled personal property coverage." You are possible to get insurance for a wide variety of assets, including the following:

  • Antiquities and works of art
  • Cameras
  • The collecting of coins and stamps
  • Firearms
  • Musical instruments