Does Homeowners Insurance Cover Burglary?
As a homeowner, you’ve worked hard to build a safe and comfortable living space. However, despite your best efforts, the risk of burglary is always present. In this article, we’ll delve into the question of whether homeowners insurance covers burglary, and what you can expect from your policy.
Does Homeowners Insurance Cover Burglary?
The short answer is yes, homeowners insurance typically covers burglary. However, the extent of coverage may vary depending on your policy and the circumstances of the burglary.
What is Burglary?
For the purpose of homeowners insurance, burglary is defined as the unauthorized taking of property, including valuable items such as jewelry, electronics, and cash. This can occur through various means, including forced entry, unlocked doors or windows, or even theft from an open garage or shed.
Types of Coverage
Homeowners insurance policies typically include three main types of coverage that relate to burglary:
• Replacement Cost Coverage: This type of coverage provides the actual cash value of stolen items, minus depreciation.
• Actual Cash Value (ACV) Coverage: This type of coverage provides the actual cash value of stolen items, including depreciation.
• Extended Replacement Cost Coverage: This type of coverage provides a higher amount than the policy’s ACV, often up to 125% of the policy’s limit.
What is Typically Covered
Most homeowners insurance policies cover the following types of stolen property:
• Personal belongings: Jewelry, electronics, clothing, and other personal items.
• Furniture and appliances: Household items such as sofas, TVs, and refrigerators.
• Cash and coins: Money, currency, and precious metals.
• Collectibles: Rare and valuable items such as artwork, stamps, and coins.
What is Typically Not Covered
However, some items may not be covered under standard homeowners insurance policies, including:
• High-value items: Items valued at more than $5,000, such as expensive jewelry, artwork, or collectibles, may require a separate endorsement or policy.
• Business equipment: Items used for business purposes, such as inventory or equipment, are typically not covered under a standard homeowners policy.
• Theft from unattended vehicles: Items stolen from unlocked or unattended vehicles are typically not covered.
Additional Endorsements
To enhance your burglary coverage, you may consider adding the following endorsements to your policy:
• Jewelry Floater: This endorsement provides additional coverage for valuable jewelry items, such as diamonds or antiques.
• Schedule of Personal Property: This endorsement allows you to schedule specific, high-value items, such as artwork or collectibles, for additional coverage.
• Business Equipment Coverage: This endorsement provides coverage for business equipment, such as inventory or equipment, that is stored in your home.
How to File a Claim
If you’ve been a victim of burglary, follow these steps to file a claim:
• Report the incident: Contact the police and file a report as soon as possible.
• Document the loss: Take photos and keep receipts for any stolen items.
• Contact your insurance company: Reach out to your insurance company as soon as possible to report the claim.
• Fill out a claim form: Your insurance company will provide a claim form for you to complete.
• Wait for an adjuster: An adjuster will be sent to your home to assess the damage and determine the value of the stolen items.
Conclusion
Homeowners insurance typically covers burglary, providing protection for your personal belongings and household items. However, the extent of coverage may vary depending on your policy and the circumstances of the burglary. By understanding what is typically covered and what is not, you can take steps to protect your property and ensure you’re adequately covered in the event of a burglary. Remember to review your policy regularly and consider adding additional endorsements to enhance your coverage.
