Does Homeowners Insurance Cover Theft?

by COUNTRY Financial

First things first: If you ever experience a home break-in, contact the police and file a report before anything else. You can contact your home insurance agent once that’s done. 

Your home and everything inside are important to you. Fortunately, your home insurance could cover not only stolen items, but damage caused by the break-in itself.

How homeowners insurance covers theft is a complex topic, but the right coverage can keep you protected before theft ever happens.

How home insurance covers theft

Your home insurance policy is a collection of coverages that work together to protect your home. Here’s how that coverage works when it comes to theft:

• Personal property coverage: Reimburses the cost of stolen items like jewelry, electronics, artwork and more.
• Dwelling coverage: Covers damage to the structure of your home. It’ll help pay for any physical damage a thief causes—broken windows and doors, damaged items in the house, etc.
• Other structures coverage: Protects other buildings on your property aside from your main home, like detached garages, barns and sheds, etc. This coverage will help pay for damage to any of those structures caused by a burglar.

Homeowners aren’t the only people vulnerable to theft. If you live in a condo, apartment or rented house, condo insurance and renter’s insurance also include protection for stolen items. Standard coverage limits can be a little lower, though, so be sure to buy the coverage level you need when purchasing.

How much homeowners insurance pays for theft

Most home insurance policies have a personal property coverage limit (the maximum they’ll pay for stolen items), which is usually 50-75% of your dwelling coverage.

Sound confusing? Here’s an example:

Let’s say your home’s dwelling coverage is $350,000, and your personal property coverage limit is set at 50% of that. In this example, your insurance would reimburse you for no more than $175,000 worth of stolen items. (This is just an example. Ultimately, you choose how much personal property coverage you need, between 50% and 75% of your dwelling coverage.)

How does insurance calculate a stolen item’s value?

When you report personal belongings stolen and file a claim for reimbursement, your insurance company must calculate each item’s worth. It does this by calculating actual cash value (ACV) or replacement cost value (RCV):

• Actual cash value (ACV): An item’s worth at the time it was stolen, which includes depreciation (meaning you may get back less than what you originally paid for it). This is the valuation method used by most standard homeowners insurance policies.
• Replacement cost value (RCV): The cost to replace an item with a new or equivalent one, without factoring in depreciation. This coverage is often sold separately and may be worth considering if you’re worried about theft or own high-value items.

What about insurance for high-value items?

Insurance companies have separate reimbursement limits for certain high-value items. If these items are stolen, their value is grouped into “sub-limits” with set payment amounts that are lower than your personal property coverage limit.

Sub-limits include items like fine jewelry and watches, precious metals, cash, firearms, and anything else that's irreplaceable. If they’re stolen, insurance will only pay you up to around $1,500-3,000 (depending on the item).

Fortunately, you can buy scheduled personal property coverage, which is additional insurance coverage for these expensive items. (If you keep high-value items in your home, we'd recommend doing that.)

Does homeowners insurance cover theft outside the home?

 Most homeowners, renters, and condo insurance policies include off-premises coverage, which protects against theft that occurs away from home, such as in your car, at work, or while traveling.

There are a few important details to consider:

• Sub-limit exclusions: Sub-limit payment caps for high-value items still apply here.  
• Proof requirement: Most insurers require proof of theft, usually in the form of a police report with an itemized list of stolen items.

Final thoughts

 A break-in can be deeply upsetting. Remember, if it happens, contact the police and file a report right away.

If you’d like to know more about how home insurance covers theft, talk to your insurance agent today—they can help you determine how much coverage you need and answer any questions.

Updated 10-22-25