Protect Your House With Theft Insurance For Homes

Protect Your House With Theft Insurance for Homes

Theft can be a huge disaster for homeowners. Your home has things that are not just valuable in money, but also hold sentimental value for you and your family. If you ever face this tough situation, how can you ensure that your personal items are replaced? Does your home insurance cover this? Keep reading to learn more.

What is a theft insurance policy?

A theft insurance policy is a part of your home insurance that is there to help you out if your personal belongings get stolen. It’s typically included in most standard homeowners insurance policies, but you can also add more coverage if you think you need it. This kind of policy not only helps you replace your stolen items, but it can also cover any damage to your home caused by the break-in, like if a window gets smashed or a door is broken. Make sure to check the details of your policy to see how much coverage you have, what the deductibles might be, and if there are any limits on what’s covered.

Does homeowners insurance cover theft?

Yes, homeowners insurance usually covers personal property theft. It helps you replace stolen items and can also pay for any damage to your home caused by a break-in. The part of your home insurance that covers theft falls under what’s called “personal property coverage.” This is the section that helps you replace any items stolen from your home and can also cover any damage caused during a break-in, like broken doors or windows.

Personal property coverage is pretty standard in most home insurance policies, but it’s important to check your policy details because there might be limits on how much you can claim or certain things that aren’t covered. For expensive items like jewelry, art, or high-tech gadgets, you might need extra coverage to make sure they’re fully protected.

What is covered by my home insurance policy if I’m a victim of theft?

Your homeowner’s insurance generally covers the contents of your home, including furniture, clothes, electronics, bikes, appliances, and even garden tools. It even covers your personal property left inside your car if it’s stolen, like a laptop or cell phone. It also typically covers belongings you’ve stored off-site, like items you’ve placed in a rented storage facility.

Also, did you know your policy might cover outdoor items like plants, trees, and shrubs if they’re stolen? It’s a good idea to talk with your insurance provider or get in touch with someone at your insurance company to find out exactly what’s covered under your policy and explore any additional coverage options that might be helpful for you.

Is stolen cash covered by my home insurance policy?

Home insurance doesn’t cover much if cash gets stolen from your house during a break-in. There’s usually a small limit of a few hundred dollars. That’s why it’s a lot safer to keep your money in the bank because it can be protected by the Canada Deposit Insurance Corporation for up to $100,000. But if you really prefer to keep some cash at home, think about getting a safe to store it in. Just make sure to bolt the safe to the floor or wall, because if it’s not secured, thieves might just pick it up and take it with them to break open later.

Can I increase my theft coverage?

Yes. In addition to personal property coverage, you can add endorsements or add-ons for extra protection, such as scheduled personal property, identity theft, and replacement cost coverage.

Scheduled personal property coverage

Scheduled Personal Property coverage is an add-on to your standard homeowners’ insurance policy that gives extra protection for your valuable items. This includes things like your expensive jewelry, art pieces, antiques, high-end electronics, musical instruments, or any other valuables that are worth more than what your main policy covers.

What’s great about this coverage is that it doesn’t just increase the limit on how much you can claim; it also protects them from more types of accidents or losses than the standard policy might, including damage or loss outside your home. You list each item you want to cover separately on your policy, with a detailed description and the value you and your insurer agree on.

Identity theft coverage

Some insurers offer this as an addition to help cover costs associated with recovering from identity theft, which can be a risk following a burglary if personal information is stolen.

Replacement cost coverage

Replacement cost coverage is another type of insurance add-on that lets you replace your stolen or damaged items with brand-new ones.

If something is stolen from your home, your insurance company will calculate its actual cash value or ACV. This means they consider how much the item has decreased in value since you bought it because of age or wear and tear. For example, if you bought a TV for $2,000 three years ago, it won’t be worth $2,000 today.

However, replacement cost coverage doesn’t factor in depreciation. So, if your three-year-old TV gets stolen, this coverage would pay for you to buy a new one that’s the same type and quality, regardless of how much your old TV had lost in value since you bought it.

How can I calculate the replacement cost of my belongings?

Start by writing down everything you own that you’d want to replace if it were lost or damaged. This includes things like furniture, electronics, clothes, and kitchen gadgets. Consider taking pictures to include as proof of what you own.

Then, find out how much it would cost to buy new versions of these items today. You can check prices online, look through catalogues, or visit stores to get accurate figures. For very valuable or unique items like jewelry or artwork, you might want to get a professional valuation to make sure you’re covered for the right amount.

Once you’ve got the current prices for all your items, add them together. This sum is your total replacement cost.