Does Homeowners Insurance Cover Theft?
See what theft coverage really means for your home and belongings.

See what theft coverage really means for your home and belongings.
Good news: Your homeowners insurance likely covers theft of your belongings through personal property coverage, and that protection is with you everywhere you go.
Learn how your policy handles theft coverage limits, exclusions, and how to make sure you’re fully protected when filing a claim.
Your homeowners policy’s personal property coverage protects your stuff when it’s stolen, from your home, your car, hotel rooms, or pretty much anywhere you take it.
Types of theft coverage include:
Your policy’s dwelling coverage also protects your home’s structure, including damage from break-ins like broken windows, damaged doors, or forced entry points.
Homeowners insurance covers theft in most situations. There are just a few specific exceptions where coverage doesn’t apply.
Coverage exclusions or limitations include:
Why these exceptions? Your policy is designed to protect against unexpected events. When you choose higher-risk situations like construction or letting strangers into your home that’s outside normal coverage.
The takeaway: For everyday theft scenarios (break-ins, car theft, hotel room theft, etc.), you’re covered. Keep in mind that negligent behavior may impact future eligibility, so even if you have coverage, it’s still important to protect your personal belongings!
Theft is a “covered peril” under your homeowners insurance policy, meaning your insurer will pay for stolen items when:
Coverage follows you everywhere, whether thieves target your car, your hotel room, your detached garage, or your home while you’re away.
Yes, there’s a cap on how much you’ll get back for stolen stuff.
Here’s how it works: if your home is insured for $200,000, your belongings are typically covered for about $100,000-$140,000 total (or about 50% of your dwelling coverage). But here’s the catch, certain items have much lower limits.
Your policy might only cover:
For expensive items worth more than these limits, you’ll need to get Extra Coverage to fully protect them.
Pro tip: With Extra Coverage, you can schedule high-value items for their full value with no deductible. That $5,000 ring? You’d get the full $5,000 back if it’s stolen.
Your homeowners insurance deductible applies to theft claims just like other covered losses. This means you’ll pay your chosen deductible amount before your coverage kicks in.
When you buy your policy, you’ll choose your deductible, which typically increases in increments of $500.
Here’s how it works: A higher deductible means lower monthly premiums but more out-of-pocket costs when you file a claim. A lower deductible means higher premiums but less money upfront if something happens.
Let’s say someone breaks in and steals $3,000 worth of your stuff. If your deductible is $1,000, your insurance company pays the other $2,000.
Your payout depends on whether you have replacement cost coverage or actual cash value coverage:
Replacement cost coverage:
Actual cash value (ACV) coverage:
Pro tip: Keep a home inventory with photos, receipts, and serial numbers to make the claims process smoother and ensure you get full replacement cost value.
If theft happens to you, here’s how to file an insurance claim:
Your insurance company will review the police report and your documentation before making a decision on your theft claim.
Don’t make these common mistakes that can complicate your claim:
Pro tip: Start building that home inventory now, with photos and receipts. Future you will thank you if something ever gets stolen.
High-value items get enhanced protection. Standard policies have specific limits for jewelry ($1,000-$2,500), and other valuable categories.
If you have expensive jewelry, art, musical instruments, bikes, or cameras, you’ll likely need to add Extra Coverage to fully protect them.
Lemonade’s Extra Coverage is a game-changer for your valuables. Here’s why:
Generally speaking, scheduled personal property coverage (aka Lemonade’s Extra Coverage) is offered for:
If you’ve got stuff worth more than those standard limits, Extra Coverage ensures you’re actually protected for what it’s worth.
While your homeowners insurance coverage protects you financially, preventing theft is always better:
Many insurance companies offer discounts for homes with security systems, so securing your home can actually lower your premiums.
Homeowners insurance policies cover theft, but knowing your limits matters. Keep a home inventory, consider extra coverage for expensive items, and remember that good security can prevent theft and lower your premiums.
Here’s the thing: most people assume they’re covered until something gets stolen. Don’t be that person scrolling through sub-limits after a break-in. Take two minutes to see what you’re actually covered for.
No, homeowners insurance doesn’t cover car theft itself. You need comprehensive coverage on your car policy for that. However, home insurance covers personal items stolen from your car. So if thieves steal your car with your laptop inside, comprehensive coverage handles the car while homeowners insurance typically covers the laptop.
By the way, Lemonade offers car insurance too, and when you bundle it with your home insurance, you can unlock a discount and simplify your coverage with one company handling both policies.
Your insurance company may still cover the claim based on photos, witness statements, or reasonable estimates, but having receipts makes the process much smoother and ensures you get full value.
Yes. Break-ins and burglary are core covered perils in standard homeowners insurance policies. Both dwelling coverage (for structural damage) and personal property coverage (for stolen items) apply during break-ins.
Yes, theft from garages, sheds, and other detached structures on your property is fully covered. The 10% limit only applies to belongings stored off your property, like in a storage unit.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.