This question often plagues the minds of renters: Does renters insurance cover theft? Imagine your roommate leaves your door unlocked and a burglar steals some of your items or your luggage gets stolen while traveling. Would you be covered?
The good news is the answer is yes.
Renters insurance policies normally include personal property coverage if items are damaged or lost by a covered peril. It will cover your items up to your policy's limits and in certain situations as theft is generally a covered peril. Keep in mind, each roommate should have their own renters policy. Your renters insurance company won't cover your roommate's loss unless they also have a policy.
What Kind of Coverage Does the Typical Renters Insurance Offer in Your Apartment?
Theft is one of the main perils renters insurance covers. If your apartment is broken into and your items are stolen, your renters insurance policy will likely cover the items. Different types of items have certain limits the insurance company will cover up until. In a situation where your laptop and TV are stolen, you'd generally receive a payout for those items after you paid your deductible. If you have any valuable items of significant value, you may want to add coverage for those expensive items.
What if something is stolen outside your apartment, such as your bike that was tied up on the porch? In situations like this, your bike would most likely be covered. Some companies might ask if the porch is considered part of your living space, though. Personal items left outside your living space may not have the same protection.
Do Renters Coverage Policy Limits Apply while Traveling?
Many people aren't aware of the other delightful ways renters insurance can help you even if you experience a theft outside your apartment. Renters insurance coverage on personal property typically extends beyond theft from inside your home. If your car was broken into and items were stolen, your renters insurance policy will usually cover the stolen items. However, if your car is damaged in a theft, like a broken window, renters insurance will not cover the damage to your car. Comprehensive coverage on your car insurance policy covers this type of damage.
Your insurance also provides coverage for stolen items while you're traveling. For example, if your luggage gets stolen from your hotel room while you're out of the state or country, your renters insurance may be able to help lessen the damper on your vacation. Even if you're on an extended trip, renters coverage would protect items in your home.
Is Your Storage Unit Covered with a Police Report?
While renters insurance has many multifaceted theft coverages, it will not always cover theft from a storage unit. It depends on if your renters insurance policy specifies they'll be covered. Some renters insurance companies may include this coverage while others may not. You may be able to add this extended coverage to your policy for a higher rate or your storage facility may have coverage available for you to purchase. Many storage unit renters now use locks that are designed to prevent theft, an extra protection that could also help you in a renters insurance claim with some companies.
Does renters insurance cover stolen cash?
Renters insurance does cover stolen cash, but it usually has a very low limit. The standard renters insurance policy typically has a $200 cash replacement limit. Insurance companies generally have low limits on cash to avoid fraudulent claims and because cash is difficult to keep an inventory of and document. You'll still need to pay your deductible if you make a claim for stolen cash. Often deductibles are $500 or $1,000, so it won't make sense to use your renters insurance to cover cash up to $200 if that's all that was stolen.
What Else Does a Renters Policy Cover?
The exact coverage will vary between policies. Generally, renters policies cover a renter's liability in certain situations. They can also cover additional living expenses after a serious claim. Some even cover related medical bills for you or an injured party. What it does not cover is the structure of your home or your roommate's belongings or liability coverage. Your roommates would need to get their own policy.
Renters insurance can offer more financial protection than you may think. To ensure you get the best coverage possible, make sure you check the coverage limits on your policy. Additionally, you should make sure you have a sufficient amount of coverage and add additional coverage for expensive items you may have, such as jewelry. The company you choose to buy a policy from also matters. You can find who consumers rate as the best renters insurance companies in your area on Clearsurance.
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