Does Renters Insurance Cover Theft?

Having something stolen from you is a pretty crummy feeling. Paying to replace the stolen item can feel even worse. The average value of property taken during larceny-theft is $1,162, according to the FBI’s Uniform Crime Reporting Program.

You’re most likely to have your personal property stolen from your car. About 27% of larceny-theft is from cars and nearly 10% is from buildings. Stolen bikes make up about 3% of thefts. And while you’re much less likely to be the victim of pocket-picking (0.6%) or purse-snatching (0.4%), it does happen.

Discovering the best renters insurance to safeguard against theft is essential, especially considering the various scenarios in which your belongings could be at risk.

What is Renters Insurance?

Renters insurance covers problems like theft, damage to your belongings from problems such as fire, and injuries to visitors. Renters insurance can generally be broken down into three main coverage types:

• Personal property coverage. This coverage pays for your belongings if they’re stolen and also for damage from fire, tornadoes, explosions, vandalism and more.
• Liability coverage. Liability coverage pays for medical expenses if a guest is hurt in your home and you’re legally responsible, like a slip-and-fall accident. It also covers property damage you cause to others, like a dog bite to a neighbor.
• Additional living expenses. Also called “loss of use,” this pays for extra expenses like hotel bills and restaurant meals if you can’t live at home because of a problem covered by the policy, like a fire.

Related: How Does Renters Insurance Work?

How Does Renters Insurance Cover Theft?

When you buy a renters insurance policy, you’ll have the option to choose the policy limit for your personal property coverage, which is the maximum amount the insurer will pay if your stuff is stolen. For example, if you buy $30,000 worth of coverage, your insurer will pay up to that amount.

Renters insurance will cover the theft of your belongings both inside and outside your home. For example, if someone steals your stuff from your car or a hotel room, renters insurance can reimburse you.

The policy will have a deductible, which is the amount of money deducted from an insurance claim check. For example, if someone steals your $1,000 watch and you have a $500 deductible, you’ll get an insurance check for $500.

To make a theft claim you’ll need a police report. You’ll also need a list of the items stolen and their estimated value. If you have receipts for the original items, even better.

Related: Everything Renters Insurance Covers

Understanding Actual Cash Value vs. Replacement Cost Coverage

When you purchase a renters insurance policy, you’ll choose between actual cash value (ACV) and replacement cost coverage. Replacement cost is the better coverage and will cost more. That’s because ACV takes depreciation into account while replacement cost will pay to replace your stolen item with a new, similar item (minus the deductible).

Special Limits for Theft Coverage

Your renters insurance policy likely has “special limits” for the theft of certain categories of items, like jewelry, electronics and collectibles. This means your insurer will only pay up to the sub-limit amount if the item is stolen. For example, a renters insurance policy might have a $1,000 special limit on stolen jewelry. That’s not going to cover your loss if a thief swipes a $3,000 ring.

“For high-value items like bikes, cameras, musical instruments and jewelry, you’ll want to get additional coverage,” says Yael Wissner-Levy, a spokesperson for Lemonade Insurance. “In insurance-speak, it’s called ‘scheduling personal property’ and it basically means adding a valuable item to your insurance policy so that it can get extra coverage.”

Does Renters Insurance Cover Stolen Bicycles?

Renters insurance covers stolen bicycles, whether it is stolen from your home or somewhere else, such as a bike rack outside work. Keep in mind that your insurer might have a special limit on stolen bicycles. For example, Progressive Insurance has a $1,500 sub-limit on bicycles. If you want better coverage, you can “schedule” the bike.

If you own an expensive or specialty bike, you might want to consider bike insurance.

Here are a tips for preventing bike theft:

• Keep your bike lock away from the ground
• Keep the gap between the lock and the bike small
• Store your bike out of plain view if possible
• Keep your a copy of your bike’s serial number in a safe place
• Register your bike with an online registry that partners with law enforcement, such as the Bike Index

Does Renters Insurance Cover Stolen Cash?

Renters insurance will generally cover stolen cash, but the sub-limit for theft coverage is usually low. For example, a renters insurance policy might cover stolen cash only up to $250.

Theft Prevention Tips

Renters insurance companies often offer discounts for having anti-theft devices such as burglar alarms, smart or connected technology that alerts you to break-ins, and deadbolts on exterior doors.

Here are ways to increase theft prevention tips at home:

• Install a security system
• Install deadbolts on exterior doors
• Install locks for pet doors
• Install a doorbell camera
• Periodically change the code to your home entry device
• Don’t leave spare keys outside (such as underneath the door mat or in potted plants)
• Secure your home wireless network to help prevent cyber theft

Here are tips for outside home:

• Don’t leave items (such as a laptop or smartphone) in plain view in your car
• Don’t leave your car unlocked
• Be aware of your surroundings and avoid distractions such as headphones or taking phone calls
• Avoid unlit or deserted areas
• Carry items such as laptops and electronic devices in a nondescript carrying case, briefcase or bag
• Use handbags or purses that have a locking flap or zipper
• Carry wallets inside your coat pocket or front pants pocket

Renters Insurance and Theft FAQ