Dwelling coverage<\/a>, also known as Coverage A, is the portion of your policy that pays for damage to your home itself, which includes damage caused by theft or vandalism. Someone breaking into your home may damage windows or doors in the process. Your dwelling coverage should pay for those repairs after your deductible is applied.<\/p>\nHowever, there may be limits to this coverage. Talking to your agent to ensure you are adequately covered might be a good idea. If the locks on your door, for example, are custom or antique, you might benefit from increasing your policy\u2019s coverage amount if possible so that you could replace them with something similar in quality. Keep in mind that damages must be over\u00a0your deductible\u00a0for insurance to kick in.<\/p>\n
Other structures coverage<\/h3>\n
If the damage or theft occurred in a detached structure on your property,\u00a0other structures coverage\u00a0should pay for damage to the building. Say someone breaks into your garage. In that case, the damage to your garage from the break-in would likely be covered. However, other structures coverage usually maxes out at 10% to 20% of your home\u2019s insurance value on a standard homeowners policy. So if you\u2019re worried about your garage, shed or fence not being fully repaired as a result of a break-in, you should talk to your insurance agent about potentially increasing your coverage.<\/p>\n
Just like dwelling coverage, the damage to the structure must be over your deductible for insurance to pay anything out.\u00a0 Also remember that if your car is stolen from your garage, your homeowners insurance doesn\u2019t cover it. You would need to have\u00a0comprehensive coverage\u00a0on your auto policy to cover a stolen vehicle.<\/p>\n
Personal property coverage<\/h3>\n
This may be the most important part of your homeowners policy if items are stolen from you because it covers your personal belongings. From clothing to furniture, your\u00a0personal property insurance\u00a0is designed to pay the costs of replacing your personal items, up to your policy\u2019s limits and taking your deductible into account. If your property was stolen from your car, your car insurance should pay for the damage to your vehicle, but your homeowners insurance could pay for the personal property that was stolen. Auto insurance policies do not cover your personal property.<\/p>\n
If you have expensive, high-end, collectible or antique items, you may want to consider\u00a0scheduled personal property coverage. Scheduling your personal property can be beneficial if you own expensive electronics, cameras, furs, jewelry or other items. If your hobby involves collecting items such as stamps or coins, or if you have high-value musical equipment, talking to your insurance agent about scheduling those items could help ensure you get an adequate claim payout if they are stolen.<\/p>\n
You\u2019ll probably need to have an appraisal of their value to schedule them, but once you have one, you may be able to insure them for the full value if they are stolen or damaged by covered events. One benefit is that scheduling may expand the range of events you are covered for and often includes replacement if you\u2019ve lost them. Another benefit: there is usually no deductible.<\/p>\n
Actual cash value vs. replacement cost insurance<\/h2>\n
Your insurance should cover you in the event of a theft, but how much it covers your belongings for is determined partly by whether you have an\u00a0actual cash value\u00a0or a\u00a0replacement cost\u00a0policy.<\/p>\n
What\u2019s the difference? Actual cash value insurance takes depreciation into account. For example, if your two-year-old laptop is stolen from your home, you might only receive a few hundred dollars in a claim payout with actual cash value insurance, since computers depreciate quickly. That may not be enough to replace your property.<\/p>\n
Replacement cost insurance, on the other hand, would pay you what was needed to purchase a new laptop of approximately the same quality as the old one. So your payout might be $1,000 or more, depending on what it would cost you to purchase a new one.<\/p>\n
Replacement cost insurance, as you might imagine, is generally more expensive than actual cash value insurance, but it can leave your finances in far better shape after a home invasion.<\/p>\n
How to file a home insurance claim for theft coverage?<\/h2>\n
If you\u2019ve been the victim of theft and the damages are greater than your deductible, you might want to\u00a0file a home insurance claim. This allows your insurance provider to investigate your loss and potentially pay you for your damages. You can file a claim by following these steps:<\/p>\n
\n- Assess the damage.\u00a0<\/strong>If your home or car has been broken into, take stock of what was damaged. Damage to your car should be covered by a\u00a0full coverage auto insurance policy, whereas damage to your home and any stolen property (from your home or car) should be covered by your home insurance. You don\u2019t have to work up an exact dollar amount for the car or home damage and stolen items, but you\u2019ll probably want to make sure the damage is above your deductible before you file a claim.<\/li>\n
- Contact your insurance company.\u00a0<\/strong>Many companies have mobile apps that allow you to file a claim or access online customer portals. You might need to call an 800-number or talk to your local agent to initiate the claims process. You\u2019ll need the date the loss happened, details about the event and information about the damage that occurred.<\/li>\n
- Work with your claim representative.<\/strong>\u00a0Your case will likely be handled by a claim representative, although occasionally you\u2019ll work with an entire team of claim handlers. These\u00a0insurance representatives are called adjusters. Keep in contact with your adjuster via email, phone, text or mail. You may need to provide documentation proving you owned the stolen property and proof of its value.<\/li>\n
- Receive your payout.\u00a0<\/strong>If your claim is approved, you\u2019ll likely get a check in the mail for the agreed-upon value of the damages. For your personal property, the check will likely just be in your name, unless the property is jointly owned. However, if there is damage to your home or car, the check may include your mortgage or finance company\u2019s name as well and you\u2019ll need to work with that institution to cash the check.<\/li>\n<\/ol>\n
How to prevent theft from your home?<\/h2>\n
Most people will agree that it is better not to have to deal with a theft than to have to deal with the aftermath of one. With that in mind, here are some suggestions for making your home less appealing to burglars and giving yourself the peace of mind that comes with knowing your family and your belongings are safe.<\/p>\n