Personal Theft Insurance

 

Personal Theft Insurance

Personal theft insurance, in its broadest sense, covers the theft or loss of personal assets. It can be placed on all personal property and is all-risk, which means that the same coverage applies whether the loss is caused by vandalism, theft, or loss. Personal theft insurance is a type of limited form of broad form insurance.

KEY TAKEAWAYS

• Broad Form Personal Theft Insurance protects against the loss or theft of personal items.

 • Personal assets insurance is commonly included in homeowners and auto insurance policies, but additional coverage can be purchased.

How Broad Form Personal Theft Insurance Works

There are restrictions on coverage for personal assets that are frequently stolen, such as jewellery, coins, and securities. Personal assets insurance is typically included in homeowner and auto insurance policies, but additional coverage can be purchased.

What Personal Theft Insurance Is and How It Works

This type of coverage is standard on both homeowner's and renter's insurance policies. However, the limitations and exclusions built into standard policies make this coverage insufficient and useless if something extremely valuable is lost or stolen.

Consider the following boilerplate language from a common homeowners policy: We do not pay for: a. theft by an insured person; b. theft in or to a structure being built, or theft of materials and supplies for use in the structure's construction, until the structure is finished and occupied; c. loss of a precious and  semiprecious stones of different kinds from its setting; d. loss caused by the theft of a "credit card"; or e. theft from a part of the dwelling normally occupied solely by an insured person while it is rented to the owner.

All claims have monetary limits: Money, bank notes, bullion, gold other than goldware and gold-plated ware, silver other than silverware and silver-plated ware, platinum, coins, and numismatic property valued at $200. b. $1,000 on securities, bills, or letters of credit, regardless of storage medium Credit, notes other than bank notes, tickets, accounts, deeds, evidence of debt, passports, manuscripts, stamps, and philatelic property are all examples of philatelic property. Approximately $1,500 was spent on jewellery, watches, precious and semiprecious stones, gems, and furs. d. $2,500 for silverware, goldware, pewterware, and gold or silver-plated items. e. $2,000 on guns and gun-related items f. "Business" property, up to the following amounts: 1) $2,500 while on "insured premises"; 2) $250 while off "insured premises." g. $1,000 for watercraft, including trailers, furniture, equipment, and motors h. $1,000 for trailers not otherwise covered.

The point here is that if you want your valuables covered by insurance, you must purchase a rider. Riders can increase your annual premiums by up to 20%, but you'll get full coverage for items like jewellery, coins, and artwork. For smaller items, many people find it cheaper to skip the riders and instead rent a safety-deposit box.

Author: RabnawazToor