Does Renters Insurance Cover Stolen Items?

Your renters insurance policy may help cover your belongings if they become damaged or stolen, up to specified coverage limits and minus your deductible. This clause can be found under the personal property coverage section.

What to Know About Personal Property Coverage

If you are a victim of theft, personal property coverage included in a renters insurance policy can pay to replace any stolen items, minus the deductible and up to your coverage limit. Your selected amount of personal property coverage should be enough to cover the total worth of your belongings.

For example, if you possess $20,000 in personal property, you should at least match that in coverage. The cost of your renters insurance policy will change based on the amount of personal property coverage needed.

Replacement Cost Vs Actual Cash Value

If your claim of theft is covered, the insurance policy typically pays out the actual cash value of the stolen item(s). Based on the insurer, it is possible for you to select replacement cost value coverage for an additional premium.

This will cover what the item is worth without any reduction for depreciation. For instance, a stolen TV will result in the policy paying you the price of the new TV instead of what it is actually worth today.

Understanding Deductibles And Limits

Let’s take a look at how deductibles and coverage limits work within a standard renters insurance policy.

Deductibles

If you need to make a claim, a deductible may be deducted from either the ACV or RCV of the item. This all depends on the type of policy you have.

Coverage Limits

Coverage limits refer to the maximum amount your policy pays out for specific items. Lots of items feature sub-limits like jewelry and collectibles.

What Else Does Renters Insurance Cover?

The typical renters insurance package will cover the following:

• Deductible: The amount you are responsible for to cover each time you file a claim prior to the insurance kicking in.
• Personal property: Covering the cost of replacing your belongings if they become damaged or stolen.
• Personal liability: Covering legal costs from property damage or injury.
• Loss of use: Paying for accommodations if you are forced to leave the residence.
• Safety features: This can include things like burglary alarms and smoke detectors, resulting in discounts.
• Add-ons: You can customize your policy to increase payout limits for certain items, or tack on earthquake cover or identity theft.

How To Get Renters Insurance

Obtaining renters insurance is already quick, but there are a few things you can do to speed up this process:

• Having residence information ready: Know details like damage and safety features of your residence. You may have to do a little digging if you are renting an apartment or home for this information.
• Coverage amount: Know exactly how much coverage you’ll need ahead of time. You can get a good idea by making a home inventory of all your belongings. Figure out the total costs and how much you’d need to repair or replace them.
• Personal information: You will need to verify your previous address, Social Security number, and decide if you want to add an individual to your policy. Have your payment method ready at this time.