Does Renters Insurance Cover Theft? (2024)

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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.”

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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

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Renters Insurance and Theft FAQ

How much renters insurance do I need to cover theft?

When you buy renters insurance, you’ll be able to select the coverage limit for your personal property coverage. A home inventory is an excellent way to determine how much coverage you need. You’ll estimate the value of your personal belongings and then select a coverage amount.

For example, if your belongings add up to about $28,000 in estimated value, you could select $30,000 in personal property coverage. You’ll want to schedule personal property for high value items (like jewelry) so you’re paid what they’re worth if they are stolen.

Does renters insurance cover car damage from a break-in?

Renters insurance will not cover damage to your car due to a break-in, such as shattered windows or broken locks. The comprehensive insurance portion of your auto policy covers vehicle damage from break-ins and other problems, such as car theft.

Does Renters Insurance Cover Theft? (2024)

FAQs

Does Renters Insurance Cover Theft? ›

In most cases, yes. Even the cheapest renters insurance will cover theft. Typically, renters insurance coverage includes not only home burglaries and break-ins but also theft that occurs away from home, such as stolen laundry or items taken from the trunk of your car.

What is typically not covered by renters insurance? ›

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy.

What is a theft deductible for renters insurance? ›

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.

Does renters insurance protect the tenant by covering damage or theft? ›

Yes, a renters policy generally covers you for stolen items, up to policy limits and sub-limits. Renters insurance up to the policy limits and sub-limits. It depends on the cause of the damage. A sudden water leak that damages property would probably be covered, as would water damage from ice damage.

Does renters insurance cover stolen money? ›

Renters policies typically cover stolen cash, up to a certain limit, usually no more than a few hundred dollars. Valuable items, including cash, jewelry and engagement rings, furs, and firearms, often have "sub-limits" clearly stated on your policy. A sub-limit is a limit within a limit.

Is the stolen property covered by homeowner's or renter's insurance? ›

Personal property insurance is the part of a homeowners, renters, condo or manufactured home policy that pays to replace your belongings if they're stolen or destroyed. This includes just about everything you own, such as: Appliances (unless you're a renter and your landlord owns them).

What are the 4 parts of coverage for renters insurance? ›

Typically, renters insurance provides four types of coverage: personal property coverage, renters liability insurance, guest medical expenses, and additional living expenses. Personal property or personal belongings coverage is what most people think of when it comes to renters insurance.

How do I deduct theft loss? ›

Individuals may claim their casualty and theft losses as an itemized deduction on Schedule A (Form 1040), Itemized Deductions (or Schedule A (Form 1040-NR)PDF, if you're a nonresident alien).

Does renters insurance cover theft by roommate? ›

There are also some exceptions, such as if the theft was perpetrated by a roommate, in which case your stolen property will not be covered. Typically, you have to pay a deductible (amount of expenses out of pocket) before you can file a theft claim and have your insurance kick in.

Which of the following is covered by renter's insurance? ›

Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy. Learn more about what renters insurance covers and the types of renters insurance coverages.

Does renters insurance cover holes in the wall? ›

However, intentional damage is likely excluded. So if you get mad and punch a hole in the wall, your renters insurance isn't going to help and neither is your landlord's policy.

Which of the following items below would be covered by a standard renters insurance policy? ›

Renters insurance typically covers your personal belongings, liability protection, and additional living expenses if your rental home becomes uninhabitable due to a covered event, such as a fire or theft.

Does renters insurance cover dog bites? ›

Yes, your renters insurance personal liability protection should pay for medical bills if your dog bites someone, with some exceptions. This usually includes guests or strangers and doesn't include cases where your dog bites someone who lives in your home.

What will renters insurance cover the loss of? ›

The standard coverages on a typical renters insurance policy are personal property, personal liability, medical payments to others, and loss of use.

Does renters insurance cover pickpockets? ›

What if stuff was stolen outside of my home? One of the best things about renters insurance is that you're also covered for theft outside of your home. That means you're protected if your laptop gets stolen from the local coffee shop, or if someone pickpockets your phone on the subway.

Does renters insurance cover being scammed? ›

Financial Fraud—Surprisingly, your renters insurance could help pay for money you lose from credit card or check fraud. So reach out to your insurance company if you are ever the victim of fraud or forgery.

Which of the following are not covered by renter's insurance? ›

Items not covered with renters insurance include: Personal property loss that exceeds the coverage limits on your renters insurance policy. Liability situations that exceed the limits on your policy. Damages caused to the structure of the building you are renting (which is covered by your landlord's homeowners policy).

What is not a common peril covered by renters insurance? ›

Certain natural disasters, including earthquakes and sinkholes, are also typically not covered by standard property insurance, regardless of whether you rent or own. Floods typically aren't covered, even when they result from another covered event such as a severe rainstorm.

Does renters insurance cover moving costs? ›

Unless you're moving to relocate while your rental home is repaired due to a peril covered by your renters insurance policy, the cost of your move is not covered either. Licensed moving companies usually offer coverage for damage while they have your stuff. Third-party moving insurance is also available.

Does renters insurance cover a broken window? ›

Renters insurance will not cover a broken window in your own residence, but the personal liability coverage in your policy will cover damage to someone else's window if it's determined you're the liable party.

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