Imagine that someone breaks into your house and steals all your personal belongings. This could be a nightmare scenario for anyone, but if you have the right coverage your insurance company will reimburse you for your loss. However, what happens when you are outside your house, and your property gets stolen? Does home insurance cover theft outside the home? You will find the answer to all those questions in this article.
Overall your homeowner’s insurance protects all your personal property, including all electronic appliances such as laptops and TVs. In case your belongings are stolen, your insurance company will cover all of it, up to a limit. The ultimate amount will depend on the inventory you gave to your provider. Remember that the protection can vary on every policy. That’s why it is important to find out what’s included in your insurance.
All the personal belongings coverage applies to your spouse and children. But, if you want to include somebody else in your policy, you can do it. The best part is that homeowner’s insurance will protect your children if they move out of your home. For instance, if they move into a college dorm, all their personal property will be covered. Keep in mind that if they are not living in campus housing, but they are still in college, your insurance policy won’t be useful.
Now that we know your insurance policy covers all your belongings, in case they are stolen from your home. You might be wondering, does home insurance cover theft outside the home?
Homeowner’s policy coverage: Theft outside your home
Your homeowner’s insurance policy protects all your personal belongings from any peril, such as a fire that damages your home. Also, in case your property is stolen inside your home or anywhere else. You will be reimbursed if your laptop gets stolen from your room, or your hotel while on vacation. However, the coverage limit would be different.
For instance, if someone steals your cellphone while you are in a hotel, you can get up to ten percent of the set personal property limit on your policy. If that same scenario were to happen inside your home, you could get fifty percent of your dwelling coverage.
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Even though your insurance covers your personal belongings, when you are off the property there are some limits to this protection. Before we look into it, we will explain the types of reimbursement you could have depending on your policy.
Reimbursement of Personal Property
You need to understand that ultimately the type of reimbursement, will be determined according to your policy. Usually, the insurance company offers two kinds of settlement.
Actual Cash Value (ACV)
When you choose Actual Cash Value replacement, you can get back the current cost of all your items. Let’s say your TV gets stolen, but you bought this appliance five years ago. The insurance company won’t give you the initial cost of the TV. Instead, you will receive the depreciated value. This means you might have to spend thousands of dollars buying new clothes and electronics.
Replacement Cost Value (RCV)
The majority of homeowners prefer a Replacement Cost Value policy because they will get enough money to buy your items today. Imagine your laptop gets stolen, and back in the day, it cost you $1,200. However, at the moment, to replace it you will have to pay $2,000. In this scenario, if you have Replacement Cost Value insurance, the company will reimburse you $2000.
These are the kinds of settlements that you will find in a standard homeowners insurance policy. If you have high-value items at home, such as jewelry or fine art, you might need to buy add-ons to protect them.
Theft covered in your policy
Since now we know how you would be reimbursed for your loss. We are going to look into which cases your insurance policy applies.
1. College Dorm
As we mentioned above, in case your children move into a college dorm, your homeowner’s policy will still protect them. If your children notice something is missing from their room, the only thing they have to do is file a claim and wait for the check. Some insurance companies even allow users to fill requests online. However, if your children decide to rent a place off-campus, they would have to purchase renter’s insurance.
2. On Vacation
While you are travelling, if your luggage gets stolen, or lost at the airport, your insurance company will reimburse you. The carrier could also offer you some coverage, but most of the time the amount won’t be enough to replace all your items. This protection also applies if you are in a hotel room. Before filling the claim, make sure you are reporting an accurate amount. That way you will have enough money to buy all the clothes and appliances you lost.
3. From your car
When you buy homeowners insurance, you will also get protection in case something gets stolen from your car, such as your laptop or purse. Keep in mind that the policy will only cover your personal property, not your car. That’s why, if you have a vehicle, you’ll also need car insurance. We understand that having both insurance policies might be expensive, but it is always necessary. Plus, if you get both policies with the same insurance company, you can get a great discount.
At the moment of filing the claim, remember home insurance only goes for your belongings, while if your car is stolen you will need to file another request.
Not all homeowners insurance policies cover theft outside your home. That’s why you will need to double-check with your insurance agent or provider before making the purchase. Even in the cases where your insurance covers these types of situations, you need to know if the insurance has any exclusions. Also, find out if there is a reimbursement limit on items such as jewelry, electronics, silverware, firearms and other high-value items.