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Does Homeowners Insurance Cover Theft from a Car?
If you’ve had something stolen from your car, you may think the right move is to file an auto insurance claim, but instead, consider turning to your home insurance coverage. While home insurance may cover theft of belongings from your car, it is important to know there are limitations on the amount of coverage you have and claim limits. If you just want to file a home insurance claim for theft, there are a few things to know before you do so.
Does Car Insurance Cover Theft or Does Homeowners Insurance?
It is a common misconception that your car insurance covers theft of items within it. Rather, it is more common for your home insurance policy (or renter’s insurance policy) to cover that loss instead. Home insurance companies provide coverage for your possessions. This may include things you normally take with you in the car such as your laptop, clothing, or purse. The key here is to know that there are still limits on the amount and type of home insurance coverage for these assets.
Theft coverage for your personal belongings falls on the shoulders of home insurance policies. Your coverage should include comprehensive protection for items up to your coverage limits. All home insurance policies have an upper limit, which is the most you can expect the company to pay out in a large-scale event. Most policies also have a per-item limit. This is the most it will pay per item lost. This secondary limit is what comes into play more so with auto theft claims.
If you file a claim for a stolen item, you will need to contact the police to create a police report. You then need to document the item and your ownership of it, such as with a receipt, if possible. Your insurance agent can then provide you with help replacing the stolen item if your policy accepts the claim. Most of the time, you must be above your deductible to receive compensation for the loss.
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When Does Homeowners Insurance Cover Theft of Your Property?
Homeowners insurance covers theft for many reasons. This includes any theft of your personal belongings whether someone breaks into your home or takes something out of your car. In some cases, you may not even know where you lost the item. You can file a claim for items you can prove ownership for, with some limitations. Your coverage should extend to items that you, the policyholder, own. It does not cover items lost by other parties in the same way. For example, if someone’s belongings were stolen from your home, you may need to file a liability insurance claim for those items.
Homeowners Insurance Coverage for Valuables
Do you have high-valued items you would like to have coverage for in case they are stolen? Most home insurance policies cover items up to a certain dollar value. This is often about $1,000 per item, though that can differ from one policy to the next. If you have items that you routinely take with you in your car, such as your laptop, that are valued at a higher amount than this limit, you will need to have an endorsement or rider added to your policy. It should specifically list the item and its appraised value. This helps ensure your policy will cover the item if lost or stolen.
Look for Limitations in Your Home Insurance Policy
Every policy has some limitations within it. Be sure you verify what types of items may be excluded and, as noted, the per item limit. If you find that someone you normally use is excluded, it may be possible to add these items on as an endorsement or rider. Or, you may want a new home insurance policy without exclusions. Do not assume your policy will cover high-end items you own. Instead, be sure your agent knows they exist and that you want coverage on them.
How to Create a Home Inventory for House Insurance
It can also be important to have proof of your ownership of these items. To do that, you may need to consider adding a home inventory to your home. Simply take a photo and write down the name of the items you own. Write down the value of those items if possible, based on receipts you have. This way, if there is a need to file a claim in the future, you have proof of ownership and value of your items. With theft from a car, this can be very important.
While homeowners insurance covers theft in a car, it is up to you to ensure your home insurance policy meets your specific needs and goals. Work with your agent to update your policy to reflect the value and type of ownership you have now.
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