Does Renters Insurance Cover Theft

In the case of a fire, smoke damage, or burst pipe, your landlord’s insurance policy will cover repairs to the building — but not your personal belongings. That’s where renters insurance comes in, protecting your property from covered events.

But what about renters insurance theft coverage? Let’s explore some common questions about renters insurance and what it covers:

• Does renters insurance cover theft?
• Does renters insurance cover theft of cash?
• Does renters insurance cover bike theft?
• Does renters insurance cover car theft?

Let’s look at some common renters insurance scenarios and see how renters insurance theft coverage helps protect your belongings and provides peace of mind at a low monthly price.

Understanding Renters Insurance Basics

Lenders require homeowners with mortgages to carry insurance to protect their property against damage from fire, plumbing leaks, vandalism, and theft. Renters face similar risks — and their property deserves similar protection.

Affordable renters insurance covers your personal belongings in case of fire, vandalism, explosions, and theft. It also provides liability coverage if someone is injured in your home, and can help pay for temporary living expenses after a covered loss. Fortunately, rental insurance is considerably less costly than homeowners insurance since the structure itself is not covered.

How Theft Is Covered Under a Renters Policy

In addition to damage due to fire or burst plumbing, renters insurance does cover theft of your personal belongings inside your rental home, up to your policy limits and minus your deductible. Coverage can extend beyond your walls, too. Renters insurance theft coverage may also apply to some belongings stored outside your home. For example, depending on your policy, a bicycle stolen outside your rental property may still be covered. Some policies may even cover the theft of personal belongings when you’re traveling.

While car theft itself is generally covered by auto insurance, renters insurance may cover personal items stolen from your car, such as a backpack, headphones, or AirPods, because it protects your belongings even when they are away from your home. Renters insurance may also cover theft of cash, but that coverage is usually capped at a small amount.

What Renters Insurance Usually Doesn’t Cover

While renters insurance does cover theft, there are limits to the protection. Your standard renters insurance policy does not cover extremely expensive items unless you buy extra coverage. For example, if you own jewelry above a certain value, you would need a separate policy or rider to make sure it’s fully covered.

Renters insurance in California typically does not cover damage from floods or earthquakes. And it generally excludes damage from mold, bedbugs, other infestations, and exterior building issues your landlord is responsible for fixing.

Separate policies are available for floods and earthquakes, but infestations or landlord neglect aren’t covered by any insurance.

How to File a Theft Claim With Renter’s Insurance

If you’ve been the victim of theft in your rental home, file a theft claim with your insurance company either online or by calling your insurer’s toll-free number. Provide details like receipts, photos, or serial numbers to verify what was stolen and help process your claim.

Simple preparation can greatly simplify the claims process should you ever need it. Let's see how.

Proactive Prevention: Protecting Your Belongings and Your Policy

Yes, renters insurance does cover theft, but you must first prove ownership. So, it’s smart to take an inventory of your valuables when you buy your renters policy and update the inventory as you add or replace items.

Take photos and/or videos of the contents of each room, with close-ups of valuable items such as your TV, laptop, and other electronics, musical instruments, jewelry, art, and antiques. Describe each item in detail, tincluding a serial number if applicable and sales receipts. These make claims faster and easier to verify.

Store a digital copy of the inventory in the cloud or a physical copy somewhere other than your rental home.

For more guidance, see How to Assess Your Belongings for Renters Insurance.

How Theft Coverage Intersects with Your Insurance Strategy

In general, renters insurance covers theft, but policies are not all the same. Many insurers offer actual cash value in a standard renters insurance policy, but you can choose to pay more for the full replacement cost coverage for stolen items.

Actual cash value reimburses you for the item’s depreciated worth, which may not be enough to buy a new one. Replacement cost coverage pays the current replace what was stolen, offering stronger protection but at a slightly higher premium.

Understanding this difference helps you choose renters insurance coverage for theft that fits both your budget and your peace of mind.

Stay Protected and Prepared with the Right Renters Insurance

At Wawanesa, your rental insurance policy is tailored to your specific needs. Our dedicated agents help you choose the right renters policy and answer all of your questions.

It’s vital that customers understand exactly what their insurance policy does and does not cover. This will give you the confidence to make an informed choice about your coverage — and peace of mind.