Does Renters Insurance Cover Theft?
(At home or on the go, you're covered.)
Written by
Insurance doesn’t have to be boring. That’s why we hired Ashley Surinak to be our BA insurance writer. Ashley specializes in making mundane subjects hella-entertaining.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
Table of Contents
Does renters insurance cover theft?
How does coverage work for items stolen from inside the unit?
How does coverage work for items stolen from outside the unit?
How much protection should you have against theft?
Does renters insurance cover theft?
As a new renter, I’m curious about what all is covered under my insurance. I live in a big city so theft is always a concern, especially since a few of my neighbors have had items stolen from inside their units or even in storage units located elsewhere in the city.
Does renters insurance cover theft and if so, does it cover theft even for items not in my unit?
Theft is a huge problem no matter where you live. In fact, a lot of theft happens during travel or at unexpected times, too. 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. I'll explain both scenarios in greater detail below, but the simple thing to remember is that your personal property is covered if it's stolen, but at different policy limits depending on where it's stolen.
If you have any questions regarding theft and renters insurance coverage, an independent insurance agent is a great resource.
How does coverage work for items stolen from inside the unit?
When personal property is stolen from inside your unit, you're covered up to your policy limit. Remember, renters insurance covers personal property like electronics, clothing, and furniture.
This means that if you have $25,000 of coverage and a $250 deductible, you'll be covered up to $24,750 under the policy. There can be per item limits that vary by policy, so it's important that you know the ins and outs of yours before you submit a claim.
If you want to go through specific scenarios regarding theft and what would be covered or not covered, an independent insurance agent can help.
How does coverage work for items stolen outside the unit?
If items are stolen outside your unit you're still covered, but the coverage limits are different. The most common scenarios where this applies are when you're traveling or if you keep property in a storage unit.
Every policy caps coverage at a different amount. A lot of policies cap coverage at 10% of your total limit for off-site theft. If you have a personal property limit of $25,000 and your policy caps coverage at 10%, you'll be covered for $2,500 minus your deductible.
Because every policy is different in terms of coverage, it's important to evaluate your options. An independent insurance agent is a great resource for that.
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How much protection should you have against theft?
It's difficult to say because this depends on your unique situation. If you own a lot of personal property and live in a high-crime area, you may want more protection.
If you travel a lot for work or leisure and are scared something might get stolen, you may want more protection, too. Most 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.
An independent insurance agent is the best resource to discuss policy limits after you take a personal property inventory.