Does Full Coverage Homeowners Insurance Cover Theft?

A home break-in and robbery are terrifying experiences likely to leave you feeling angry and vulnerable. After all, your home is your sanctuary — the place where you expect to feel safest, and where you expect your belongings to be safe as well.

Fortunately, most homeowners insurance policies cover repair costs for property damage caused by a home break-in as well as the loss of your personal property due to theft. In fact, the coverage could extend beyond your home to other buildings on your property, and even to other locations where you store your belongings.

Does homeowners insurance cover theft and break-ins?

The specific coverage provided by your homeowners insurance depends on the type of policy you have. But even the most basic form of home insurance — such as an HO-1 policy — covers a list of named perils that includes theft and vandalism. This helps protect your personal belongings as well as the home itself.

The most common type of homeowners insurance — HO-3, or special form — covers all perils, including theft and vandalism, not specifically excluded from your policy.

Four types of coverage within your homeowners policy protect you in the event of a burglary:

Dwelling: Dwelling coverage pays the cost of repairing your home if it’s damaged during a break-in or attempted break-in. For example, if the burglar damages a window or door, the insurance carrier will pay for the repair or replacement.
Personal property: If a thief steals your personal property, your personal property coverage will help pay the cost of replacing it. Belongings damaged in the course of the theft are also covered.
Other structures: Your home isn’t the only structure your homeowners insurance covers. The policy also protects detached garages, sheds, and other buildings on the property that might suffer damage during a robbery.
Additional living expenses: If the criminals who break into your home vandalize it so extensively that it’s not inhabitable, additional living expenses coverage will pay for temporary housing and necessary living expenses while it’s being repaired.

Coverage limits

Your homeowners insurance coverage is limited by a couple key factors. The first is your deductible, which is the amount you’re responsible for paying before your insurance picks up the rest.

The second is your policy limit, which is the maximum amount your insurer allows you to claim. In the case of a home break-in and theft, you’re unlikely to reach your limit for dwelling and other structures coverage, but you might reach it for personal property.

Personal property coverage is usually limited to 50% to 70% of your total insurance on your home, according to the Insurance Information Institute. Valuable items such as jewelry, electronics, and art have their own limits, which can be increased with an endorsement or rider known as scheduled personal property coverage.