A common concern of many homeowners insurance policyholders is whether or not home insurance actually covers the theft of property from a car. If you are the victim of a car burglary you will definitely want to know.
Your car insurance will actually cover any items that are attached to your vehicle or if the vehicle itself is stolen; however, personal belongings that are stolen from the vehicle, including things that you customarily use in the car like a GPS system, are not covered. That’s when you turn to your homeowners insurance policy.
Read on to learn the specifics of what is covered by home insurance and what is covered by car insurance in the event of a theft of property from a vehicle. Also, be sure to enter your zip above to find and compare free home and auto insurance quotes!
What Home Insurance Actually Covers in Theft from a Car
If you check your home insurance policy and look under Coverage C – Personal Property, you will find a detailed answer to your question about what your policy actually covers. It extends you coverage for your personal belongings regardless of where they are. However, there are some exclusions and limitations to this section of the policy. By reading the fine print on yours, you will know where you stand.
Typically, personal belongings away from your home are covered at about 10% of the value of the coverage you have on your home. There are many limitations on the amount of coverage for computers and electronics equipment, things that are often stolen from vehicles. Make sure you know the details of your particular policy and you may be able to purchase riders to extend that coverage.
If the items that you had stolen were things you use as a part of your business, you will find that your homeowners insurance policy has even more extensive limitations on how much you can claim.
Why it Often Doesn’t Make Sense to File a Claim
Despite the fact that you can make a homeowners insurance claim for items stolen from a car, it does not always make sense to do so. One of the biggest factors is the deductible on your homeowners insurance policy. Many people keep it at $500 and above in order to keep their premiums low. This may preclude many insurance claims for items stolen from a vehicle.
If the deductible is so high that it means you will get very little money towards retribution, you may want to forego the claim to avoid the damage that small claims can do to your premium. In order to keep your premiums low, you will want to avoid frequent or small claims, as they do have an impact on the price you pay for insurance.
If you paid cash and the receipt is in the bag with the item, you may have a very hard time convincing any insurance company that you ever owned such an item and that it was indeed stolen. If there are no signs of forced entry into your car, you may also find that it is difficult to deal with the insurer. If you left your car unlocked and theft occurred, it makes you look as if you are attempting to commit fraud.
Many homeowner insurance policies have coverage for personal property at actual value. What this means is that you will not receive enough money to actually repurchase the item new. Therefore, it is wise to look at putting a replacement cost endorsement on your policy at least for personal property so that you will actually receive enough to replace your items, if you do make a claim.
Buying the Right Homeowners Insurance
If you are looking for protection from theft of property from a car, ironically, you will need home or renter’s insurance. When looking to buy home insurance, there are many things to consider. First it makes sense to shop around for prices and compare not only dollar amounts, but also the coverage offered, the customer service record of the company and its financial stability.
An excellent way to start is by getting a variety of quotes from top insurance companies with a free online quote tool. These tools are easy to use and will quickly get you started with multiple quotes at once. Use price comparisons to narrow the list of companies to look into further.
The companies you are actually considering buying from should be checked out through one of the independent insurance ratings companies, such as A.M. Best, Standard & Poor’s or Moody’s. Their ratings will tell you if the insurer has a good financial standing and a positive outlook for the future. Check its customer service record through the state department of insurance or with a simple online search.
Get started today with our free online quote tool, for home insurance and auto insurance rates from competing insurance companies quickly and easily.