Homeowners insurance typically covers theft of your home and property, and there are several components of a typical home policy that you’ll want to understand to ensure you get the coverage you need.
In general, a homeowners insurance policy offers four facets of home coverage:
- housing: in case your home is damaged by fire, hurricane, lightning or other disaster. (Note that damage from floods and earthquakes are not covered by basic homeowners insurance policies.)
- Personal Liability: In the event a visitor is injured or the visitor’s property is damaged while at your home due to your negligence.
- Additional Living Expenses: Covers the cost of temporary living expenses if your home becomes uninhabitable after a covered incident, such as a fire.
- personal belongings: personal property coverage is designed to cover your belongings, such as furniture, clothing, or electronics, in the event of a covered loss, whether they are damaged in your house, apartment or anywhere. in the world.
- all appliances and electronic equipment. make a note of the serial numbers and keep the original receipts, if possible.
- a list of clothing by general category. five pairs of jeans, three sweaters, six pairs of sneakers, for example.
- a list of sporting goods, including bicycles. take pictures and keep original receipts, if possible.
- items stored in a storage facility or other off-site location.
What does home insurance cover if I am a victim of theft?
When it comes to your personal belongings, a homeowners insurance policy will typically cover items like furniture, clothing, electronics, bikes, appliances, and lawn care equipment. the settlement of losses will depend on the type of coverage you have purchased. For example, if you purchased replacement cost coverage, your stolen items are generally covered for the amount it costs to repair or replace them, less your deductible.
In addition, your outdoor plants, trees and shrubs may be covered against theft under your homeowners policy. check with your independent agent or travel representative to find out what your policy covers and to learn about additional coverages that may be helpful to you.
In general, total replacement coverage for personal property in the home is between 50% and 70% of the overall limit of insurance you have on the structure of your home. Personal property coverage generally extends to all related family members in the household. rent-paying roommates who are not related are not covered by your homeowners insurance and may want to consider purchasing their own policy to protect their belongings.
Homeowners insurance usually also covers personal belongings you store off-site. that can include, for example, large pieces of furniture stored in a rented storage facility or even a game console stolen from a student’s bedroom. coverage for personal items stolen while away from home is generally limited to 10% of your personal property coverage.
how do i calculate the replacement cost of all my stuff?
There are two ways an insurance company can value stolen items, depending on the type of loss settlement you choose. the method used may affect the amount of a payment you receive on a claim. You can choose to be insured for actual cost value or replacement value. talk to your local independent agent or traveler representative about what makes sense for you.
what is actual cost value (acv)? this is the depreciated value of an item at the time it was stolen. For example, a television from three years ago that originally cost $900 may be worth only $150 today.
what is the replacement cost value? represents the amount it would cost to replace a stolen item today. For example, a three-year-old television worth $150 today could cost $900 to replace.
You’ll need to decide if you want ACV personal property coverage or optional replacement cost coverage when you purchase your homeowners insurance policy. The latter will likely cost you more in your annual policy premium, but the benefit is that you’ll be able to buy new replacements for things you lost if you have a personal property claim. just remember, you’ll be responsible for paying your deductible, no matter what type of coverage you choose.
what information will I need?
A current home inventory can help you decide how much personal property coverage to buy. It can also help get a homeowner’s insurance claim resolved faster.
Consider keeping your list in a cloud-based digital archive that can be accessed from more than one device. for example, a home inventory stored on the hard drive of a stolen laptop will not be accessible, but a file stored on an internet-based storage system will be accessible via computer, smartphone or tablet from your office.
When creating your home inventory, please include:
once your inventory is complete, store it in a safe and easily accessible place. be sure to update regularly, especially after acquiring new possessions.
Will I need additional coverage for my luxury belongings?
Expensive items like jewelry or art are usually covered under a standard homeowners policy, but only up to a certain amount. Additional coverage is often available for valuable or hard-to-replace items such as fine jewelry, rare works of art, collectibles, or specially crafted musical instruments.
How do I know if I have the right amount of homeowners insurance?
When was the last time you checked your home insurance coverage? If it’s been a while, you’ve upgraded your home, or you’ve bought or purchased new high-value items, it may be time to learn more about updating your coverage. Travelers is an industry-leading provider of homeowners insurance, offering a wide variety of coverages to help you customize a policy to your unique needs.
Contact your local independent agent or travel representative to learn more, review your current coverage, or get a home insurance quote today.