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Does Renters Insurance Cover Theft?

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October 17, 2022

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Renter’s insurance helps keep you from suffering further financial losses in the event of damage or theft to your property. When you get it, the insurance company will reimburse you based on the circumstances and the amount covered by the policy. However, not all theft is equal, so there are some things to consider when signing up for a renter’s insurance policy. Continue reading to understand does renters insurance cover theft.

What Are the Types Of Coverage Renters Insurance Offers?

Renter’s insurance provides coverage in these ways:

  • Personal property coverage – insurance reimburses you for losses incurred by damage or theft.
  • Liability coverage – adds legal protection if someone suffers an injury on your property.
  • Additional living expenses – If you have to temporarily move out of your home, insurance pays for expenses such as hotel stays and meals.

Personal property coverage applies in this case.

Where Does Coverage Apply?

Renter’s insurance protects you from theft in more areas than just inside your home. Coverage also applies for items stolen outside your home. For example, it can cover items stolen from your car. The same is true for possessions taken from your hotel room.

How Much Will the Insurance Pay?

Your policy’s payout depends on the amount and types you sign up for. For example, if you sign up for a $25,000 policy, your insurance will disburse no more than that amount. Remember that your deductible will factor into this. If the theft amounts to $2,000 and your deductible is $500, you’ll get $1,500 to account for the deductible.

You can choose between two reimbursement types – actual cash value and replacement cost. 

Actual cash value reimburses you according to the item’s value at the time of the theft, not the initial purchase price.

With replacement costs, the insurance company will disburse enough funds to allow you to afford a new version of the product stolen from your home. This coverage is the more expensive of the two because it provides greater coverage.

Related Article: What Will Renters Insurance Protect You From?

Is There Coverage for Expensive Items?

Certain items, such as art collections, musical instruments, antiques, and jewelry, exceed the costs of other property types. Renter’s insurance places sub-limits on how much it will disburse, and this compensation will be inadequate. 

As a result, it’s a good idea to get scheduled personal property coverage so that you can get your most expensive possessions insured for their actual value. You can also get appraisals for items whose value appreciates so that you’ll get the proper compensation if stolen.

We Help You Stay Protected

Just as your items are valuable to you, you’re valuable to us. At Magnolia Insurance Agency, we’ll ensure you have the right insurance for any losses. Whether it happens in your home, car, or hotel, we’ve covered you. For more information about renters insurance, call us at 770-213-5171 or fill out our inquiry form online. 

Renters Insurance / By Magnolia Insurance Agency

Contact Us Today – 770-213-5171

Stephen Dufour
Owner, Magnolia Insurance Agency
Office: 770-213-5171
Fax: 770-338-6932

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