As a tenant, understanding exactly what's covered by your renters insurance is critical, especially considering that theft can happen to anyone, anywhere. Knowing that your renters insurance policy can cover theft of your personal belongings both in and outside the home can help you more confidently file claims if and when necessary. It may also encourage you to keep those travel plans, knowing you're still protected even while away from home.
Fortunately, an independent insurance agent can help you get covered by the right renters insurance. They'll get you matched to a policy long before you ever need to file a claim. But until then, here's a breakdown of when and how renters insurance covers theft.
Does Renters Insurance Cover Theft?
Theft can be a problem regardless of where you live and whether your belongings are stored at home or with you while you're running errands. Many incidents of theft happen during travel or at otherwise unexpected times.
Luckily, theft is a covered peril under a renters insurance policy. Even better, your renters insurance policy protects against theft even if you aren't at home when the theft occurs. However, your policy's coverage limits are often lower for theft and incidents that occur away from the home.
Does Renters Insurance Cover Theft Outside of the Home?
Yes, standard renters insurance covers theft outside of the home. This applies whether property is stolen in a storage unit or even from the moving truck while you're in the process of moving. However, you'll need to review your specific renters insurance policy to be certain. A few policies might not include theft coverage.
Theft is a named peril in most renters insurance policies, but it's still important to check yours with the help of your independent insurance agent. If theft is a named peril, your policy could cover a loss at your primary residence, at a storage unit, or even while you're traveling.
Does Renters Insurance Cover Theft While Traveling?
Yes, renters insurance can cover theft of your personal property while you're traveling. This can include personal belongings like clothing and electronics that are stolen from a hotel or Airbnb.
It may also cover your belongings if they're stolen while you're attending an event like a concert. However, just keep in mind that your coverage limits for items stolen while traveling will likely be lower than if the items were stolen from your home.
How Does Renters Insurance Cover Items Stolen from Inside the Home?
When personal property is stolen from inside your unit, you're covered up to your policy's limit in the contents coverage section. But you'll have to pay your deductible amount out-of-pocket each time you file a claim.
This means that if you have $25,000 of personal property coverage and a $250 deductible, you'll be covered up to $24,750 under the policy, assuming you had to file a claim that large and the whole amount was approved by your carrier. There may be per-item limits that vary by policy, so it's necessary to know the specifics of your coverage before you submit a claim.
How Does Renters Insurance Cover Items Stolen Outside the Home?
If items are stolen outside your unit, you're still covered, but coverage limits are often lower for incidents that happen away from home. The most common scenarios where this applies are when you're traveling or if you keep property in a storage unit.
Every policy limits coverage to different amounts. Many policies cap coverage at 10% of your total personal property limit for off-site theft.
This means that if you have a personal property limit of $25,000 and your policy caps coverage at 10%, you'll be covered for up to $2,500 minus your deductible. Review the specifics of your renters insurance policy together with your independent insurance agent to be certain of how much theft coverage you have both at and away from home.
What Types of Personal Property Are Covered by Renters Insurance?
Most of your personal property items are covered by renters insurance, but there can be some exclusions. These items are typically covered by renters insurance:
- Clothing
- Jewelry
- Furniture
- Silverware
- Collections
- Cash
- Electronics
- Appliances
- Food
However, high-value items may be excluded. High-value items could be anything from especially valuable pieces of jewelry to antiques, cash, art, specific electronics, and other premium items.
You may need to specifically list or "schedule" these items on your renters insurance policy to have coverage for them, and they'll likely increase your premium cost a bit. The cost of renters insurance can depend largely on the amount of personal property you need to insure. An independent insurance agent can help you ensure that your renters insurance includes coverage for all of your personal items.
How Much Personal Property Coverage Do I Need?
There's no one right answer to this. Everyone owns different amounts of property and at different valuations. However, each individual should consider how much it would cost to replace everything they own if it got damaged or destroyed. This requires you to make a list of the property you own and the general value of each item. This is the most accurate way to decide how much personal property coverage is right for you.
If you own a lot of personal property and live in a high-crime area, you may want more protection. Also, if you travel a lot for work or leisure and are concerned that something might get stolen, you may want more protection.
Many policies come with a baseline of $25,000 in personal property coverage. You can pay more for a higher limit if you have more property or own a lot of valuable items.
Also, keep in mind that coverage could be for the actual cash value (i.e., current market value of the items, accounting for depreciation) or replacement cost coverage (i.e., coverage at today's retail prices). Review your specific policy to understand exactly how much coverage you have for your personal property.
An Independent Insurance Agent Can Help You Get the Right Renters Insurance
Working together with a local independent insurance agent is the best way to get set up with the right amount of renters insurance for you. Your agent can help evaluate your unique needs for coverage in every area.
Then, they can shop and compare policies from multiple carriers to find you the options that offer the best blend of coverage and cost. And down the road, your agent can even help you file renters insurance claims when necessary.
Sources
https://www.progressive.com/answers/does-renters-insurance-cover-theft/
