If someone steals something that belongs to you, you feel pretty bad. The cost of replacing stolen items is even worse: according to the FBI’s Uniform Crime Reporting Programme, the average value of items stolen in a robbery is $1,162.
The likelihood of your personal property being stolen from your vehicle is the highest. Thefts from vehicles account for about 27% of thefts, while thefts from buildings account for nearly 10%. Bicycles account for about 3% of the thefts. The likelihood of being a victim of pickpocketing (0.6%) or purse snatching (0.4%) is relatively low, but it happens.
Fortunately, home insurance covers theft of personal items, both inside and outside the home.
What is tenant’s insurance?
Renter’s insurance covers theft, property damage caused by fire, and injuries to visitors. Renters insurance is generally divided into three main types of insurance.
Property insurance:
This insurance covers damage caused by fire, tornado, explosion, vandalism, and theft.
Liability insurance.
Liability insurance covers medical expenses when a guest is injured at home and is legally responsible, such as in a slip and fall. It also covers property damage to others, such as a dog bite by a neighbor.
Additional living expenses.
This insurance, also called “loss of use,” covers extra expenses such as hotel or restaurant meals if you can no longer live in your home because of a fire or other problem covered by insurance.
How does renters insurance cover theft?
When you buy homeowners insurance, you can choose an amount of coverage for personal belongings (the maximum amount the insurer will pay if your belongings are stolen). For example, if you purchase $30,000 in coverage, your insurer will not pay more than that amount.
Renters insurance covers theft of items inside and outside your home. For example, if your belongings are stolen from your car or hotel room, the renter’s insurance can pay for this.
The policy will state the deductible (the amount that is deducted from the coverage amount). For example, if a watch worth $1,000 is stolen and you have a $500 deductible. You will receive a check for $500.
To report the theft, you must provide a police report. You will also need a list of the stolen items and their estimated value. It is even better to have receipts for the original items.
Understand the actual cash value and replacement cost coverage.
When you purchase home insurance, you have a choice between Actual Cash Value (ACV) coverage and replacement cost coverage. The best coverage is replacement cost coverage, but it comes at a price. That’s because ACV accounts for depreciation, while replacement costs are paid. For replacing the stolen property with new and similar property (minus a deductible).
Specific limits for theft insurance
Renters’ insurance policies may provide “special limits” for theft of certain categories of property, such as jewelry, electronics, and collectibles. This means that if an item is stolen, the insurer will only pay up to the special limit. For example, renters insurance may have a special limit of $1,000 for stolen jewelry. This would not cover the loss if a thief stole a ring worth $3,000.
Does the renter’s insurance cover stolen bikes?
Renter’s insurance covers stolen bicycles. Whether they are stolen from your apartment or from another location. Such as a bike rack near your workplace. Please note that insurers may have specific restrictions for stolen bikes. For example, Progressive Insurance has a lower limit of $1,500 for bikes. If you need more coverage, you can “schedule” your bike.
If you own an expensive or special bicycle, you should consider bicycle insurance.
Here are some tips on how to prevent bike theft.
- Keep bike locks off the ground.
- Leave a small gap between the lock and the bike.
- Keep your bike out of sight as much as possible.
- Keep a copy of your bike’s serial number.
- Register your bike in an online registry linked to the policy, such as Bike Index.
Does Renters insurance cover stolen cash?
Home insurance generally covers stolen cash, but the lower limits of theft coverage are usually low. For example, homeowners insurance only covers up to $250 in stolen cash.
Tips for preventing theft
If you have anti-theft devices, you may be eligible for a reduction on your renters’ insurance. (e.g., burglar alarms, smart or networked technology that prevents theft, locks on exterior doors, etc.).
Below are some tips for preventing burglaries.
- Installing security systems
- Installing locks on exterior doors
- Installation of locks on front doors
- Installing doorbell cameras
- Change the code on the entry devices of the house regularly.
- Do not leave extra keys outside (e.g. under doormats, in flower pots).
- Secure your home’s WLAN and prevent cybercrime.
Here are some tips to keep your home safe
- Don’t leave items such as laptops or smart phones in plain view in your car.
- Don’t leave your car unlocked.
- Monitor your surroundings and avoid distractions such as headphones and phones.
- Avoid dark or deserted areas.
- Carry laptops and electronics in a discreet case, briefcase, or bag.
- Use a purse or wallet with a flap or zipper.
- Carry purses in your coat pockets or front pants pockets.
About Author
Lily Poole is a Property and Home Insurance officer by profession. She is pretty well experienced in the cheap renters insurance nyc and accounting field. Further, she has an impressive profile in the training and development industry.
