SimplyIOA

Does Renters Insurance Cover Theft?

Written by SimplyIOA | Mar 22, 2023 4:00:00 AM

Let’s face it: when you’re a first-time renter, there are a lot of things to think about. One of the most important things is whether you need renters insurance.

In this post, we’ll share:

What is renters insurance?

Does renters insurance cover theft?

How to file a claim for theft on renters insurance

How to prevent theft as a renter

WHAT IS RENTERS INSURANCE?

Renters insurance is a type of insurance that helps to protect renters in the event of damage to their rental property. It can cover things like lost or stolen possessions, damage from fires or and even personal liability.

While it’s not required by law, it’s crucial to get renters insurance if you’re renting an apartment or home. Your landlord may have insurance that covers the physical structure of the property, but this will not extend to your belongings or liability.

Renters insurance is relatively inexpensive and can give you peace of mind in knowing that you and your belongings are protected.

How Does Renters Insurance Work?

When you’re a renter, it’s essential to have insurance to protect both your belongings and yourself. Renters insurance has three primary coverages: personal property coverage, liability coverage, and additional living expenses.

  1. Personal property coverage protects your belongings in case of damage or theft.
  2. Liability coverage protects you if someone is injured while in your home or if you damage someone else’s property.
  3. Additional living expenses can help you pay for temporary housing and other expenses if you need to move out of your home due to damage from a covered event.

When you purchase a renters insurance policy, you have the option to choose the policy limit for your personal property coverage, which is the maximum amount the insurer will pay if your belongings are stolen.

The average renters insurance policy limit is $30,000 in coverage for personal property. For example, if you have a $30,000 policy and your laptop is stolen, your insurer would reimburse you for the cost of buying a new laptop. If you have items worth more than your policy limit, you can purchase additional coverage for these items or purchase a separate insurance policy to cover them.

HOW DOES RENTERS INSURANCE COVER THEFT?

Renters insurance should cover you in the case of theft. Further, this insurance protects your belongings from theft both inside and outside your home. For instance, renters insurance can reimburse you if you have something stolen from your car or even a hotel room.

Besides reimbursement for the value of stolen items, many renters insurance policies also provide coverage for the cost of temporary living expenses if your home gets burglarized and becomes uninhabitable. This can be an invaluable benefit if you suddenly face the costs of finding a new place to live and replacing all your belongings.

According to Forbes.com, “about 27% of larceny-theft is from cars and nearly 10% is from buildings. Stolen bikes make up about 3% of thefts.” So, when it comes to protecting your things, renters insurance is well worth considering.

Will Renters Insurance Cover My Stolen Bicycle?

No matter how much you spend on a new bike, be sure to add or “schedule” it to your renters insurance policy. Your policy will cover your stolen bike, whether it’s stolen from your home or a public bike rack.

That said, it’s important to note that most insurers have a special limit for stolen bicycles. This means that if your bike is worth more than the limit, you will only be reimbursed up to the limit.

Will Renters Insurance Cover Items Stolen From My Car?

Most renters insurance policies will cover items that are stolen from your car. However, there are some caveats to this coverage.

First, most policies will only cover items that are specifically listed in the policy. So, if you have a $500 limit on belongings and your laptop is the only item listed, then your renters insurance will only cover up to $500 of damage or loss.

Second, most policies have a deductible that must be met before the coverage kicks in. So, if your deductible is $250 and someone steals your laptop, you would need to pay the first $250, and then your renters insurance would cover the remaining amount.

Finally, it’s important to remember that renters insurance does not cover the actual car itself — only the items inside the car.

So, if someone steals your car, you’ll need to file a claim with your auto insurance company. In summary, renters insurance can provide coverage for items that are stolen from your car, but there are some limitations to this coverage.

What Renters Insurance Will Not Cover

We recommend every renter get renters insurance for peace of mind, but it will not cover everything.

  • If you’re careless with your belongings and they get damaged on purpose or through your own negligence, then you may not be eligible for reimbursement.
  • If you leave your home unoccupied for an extended period, your policy may not cover theft.
  • If you have expensive items, such as jewelry or electronics, your policy may only cover up to a certain dollar amount.

To learn more about what is and isn’t covered by your policy, be sure to talk to your insurance carrier.

HOW TO FILE A CLAIM FOR THEFT ON RENTERS INSURANCE

Filing a theft claim on your renters insurance is a simple process, but there are a few things you’ll need to do first.

  • First, you’ll need to file a police report. This will provide documentation of the crime, as well as a list of the items that were stolen.
  • Next, you’ll need to gather receipts or other documentation proving the value of the stolen items. This will help your insurance company determine how much to reimburse you for the loss.
  • Finally, you’ll need to submit a claim form to your insurance company. This form can usually be found on the company’s website or through your agent.
  • Once you’ve submitted the form, your insurance company will review your claim and determine whether you are eligible for reimbursement.

HOW TO PREVENT THEFT AS A RENTER

As a renter, it’s essential to do everything you can to protect your belongings and your space. While your landlord handles the physical structure of the property, it’s up to you to help prevent theft.

Fortunately, any renter can adopt several simple and effective theft prevention strategies:

  1. Invest in a high-quality burglar alarm. Many renters insurance companies offer discounts for having an anti-theft device installed, so it’s a win-win situation.
  2. Install smart or connected technology that alerts you to break-ins.
  3. Install deadbolts on exterior doors to deter thieves.

By taking these simple precautions, you can help to ensure that your home is safe. Renting a home is an enormous responsibility and it’s essential to protect your belongings and finances in case of an accident. That’s where renters insurance comes in!

If you need help finding the best renters insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a renters insurance quote online now.