Does renters insurance cover theft?

How personal property coverage pays to replace stolen belongings

If you're a victim of theft, personal property coverage under a renters insurance policy can pay to replace stolen items, minus your deductible and up to your coverage limit. Your selected amount of personal property coverage should cover the cumulative worth of your belongings (creating a home inventory may help determine how much coverage you need). For instance, if you have $30,000 in personal property, you may need at least that much in coverage. The amount of personal property coverage that you select can also impact the cost of your renters insurance policy.

Understanding replacement cost vs. actual cash value

If you're a victim of theft, and your claim is covered, your renters insurance company typically pays you the actual cash value (ACV) of the stolen item. Depending on your insurer, you may be able to choose replacement cost value coverage (RCV) for an additional premium. RCV covers what your item is worth without any reduction for depreciation. For example, a TV that you purchased for $750 three years ago may only have an ACV of $400. RCV would pay you the value of a new, comparable television.

Understanding deductibles and limits

Here's a quick breakdown of how a renters insurance deductible and coverage limits work on a standard renters policy:

Deductible

In the event you need to make a claim, a renters insurance deductible may be deducted from the ACV or RCV of the item, depending on your policy.

Example: Your camping equipment was stolen from your garage and the actual cash value is $1,500. Your insurer may pay you up to $1,250 to account for your $250 deductible.

Coverage limits

This refers to the maximum amount your insurance company will pay out for a specific item. Lots of items have sub-limits, such as art, collectibles, and jewelry.

Example: Your coin collection was stolen out of your bag on the bus. Even though the actual cost value is $2,000, your insurance company has a sublimit of $1,000 on collectibles, so you'd only receive $750 to account for your $250 deductible.

Renters insurance & theft FAQs

What should you do if something was stolen?

If an item of yours was stolen, it's best to:

1. Let your landlord and/or property manager know
2. File a police report to document the crime
3. Contact your insurance company

Does renters insurance cover theft outside of your home?

Many insurers, including Progressive, typically cover theft (up to specified coverage limits) while you're away from home. In fact, your items may be covered against theft while you're on vacation, or while you're moving and your items are in storage, up to your policy's limits minus your deductible.

Does renters insurance cover broken windows resulting from a burglary?

Your landlord is responsible for any damage to the unit or home you're renting and should carry landlord insurance that can pay to repair or replace broken windows.

Does renters insurance cover car theft?

The theft of cars, motorcycles, RVs, boats, and any other motor vehicles typically aren't covered by renters insurance. You need a separate insurance policy specific to your vehicle to cover motor vehicle theft. However, renters insurance may cover items stolen out of your car up to your policy's limits minus your deductible.

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

Damage to your car is not usually covered under renters insurance. However, renters insurance may cover any personal belongings stolen from your car. For example, if your car is broken into and your laptop computer is stolen, renters insurance may cover the stolen laptop and your car insurance may cover the broken window. Learn more about car insurance and theft.

Does renters insurance cover bike theft?

If your bike is stolen from your garage, neighborhood park, or just about anywhere you ride it, you may have coverage up to the limits of your policy minus your deductible. Some insurers may require you to add an insurance rider to your renters policy to insure your bike, which may cost extra.

Does renters insurance cover stolen cash?

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. For example, your policy's personal property limit may be $35,000, but your sub-limit for cash isn't likely to exceed $250.

Does renters insurance cover stolen laundry?

Renters insurance generally covers clothing against theft, up to your policy's limit and minus your deductible, in the event of a covered loss.