Peril: Theft

The theft peril in homeowners insurance covers losses resulting from the unlawful taking of personal property. This includes theft from the insured property or, in some cases, off-premises theft. Coverage may exclude theft by residents of the household, during periods of extended vacancy, or from structures not fully secured. High-value items often have coverage limits and may require additional endorsements.

The following losses are not covered under the theft peril:

• Theft committed by an insured.
• Theft occurring in or from a dwelling under construction.
• Theft of materials and supplies intended for constructing a dwelling before it is completed and occupied.
• Theft occurring in any part of a residence premises that is rented out by the insured to others.

An important exclusion to note involves materials and supplies used for constructing a dwelling under construction. While Coverage A does include protection for materials and supplies intended for construction, remodeling, renovation, or repair, this coverage only applies if the materials are located and maintained at the residence premises.

Homeowners policies also impose additional restrictions for theft losses occurring outside the residence premises:

• No coverage is provided for property located at another residence owned by, rented to, or occupied by an insured, except when the insured is living in the other residence temporarily.
• Property belonging to a student who is an insured is not covered at a residence away from home, unless:some text
  • The student has been at the residence at some point within the 90 days immediately preceding the loss, or
  • The residence is used as housing while the student is attending school.

Theft coverage exclusions also apply to specific types of property:

• Watercraft, including furnishings, equipment, and outboard engines or motors, are not covered if stolen.
• Trailers and campers are excluded from theft coverage.

AVERAGE COST PER THEFT CLAIM: 

$4,415

(Insurance Information Institute, 2023)