Theft & Burglary Insurance Claims

Immediate Steps After a Theft

What you do in the first 24-48 hours after discovering a theft can significantly impact your insurance claim. Follow these steps to protect your interests.

1. Call the Police

File a police report immediately. This is critical for your insurance claim because:

• Most insurers require a police report to process theft claims
• The report documents the date and circumstances of the theft
• It creates an official record of stolen items
• Failure to report promptly may give insurers grounds to deny your claim

2. Document the Scene

Before cleaning up, thoroughly document the break-in:

• Photograph all points of entry (broken windows, damaged doors, forced locks)
• Take pictures of ransacked rooms showing the disturbance
• Video walk-through narrating what you observe
• Document any property damage from the break-in itself

3. Contact Your Insurance Company

Report the theft to your insurer as soon as possible. Most policies require "prompt" notice of loss. Get a claim number and the adjuster's contact information.

Creating Your Stolen Property Inventory

Your stolen property inventory is the most important document in your theft claim. Take time to make it thorough and accurate.

What to Include for Each Item

Proving Ownership Without Receipts

Many people cannot locate receipts for stolen items. Here are alternative ways to prove ownership:

• Credit card and bank statements: Show purchase transactions
• Old photos and videos: Check social media, cloud storage, and old phones for images showing the items in your home
• Product registration: Contact manufacturers if you registered products
• Warranty records: Check email for warranty confirmations
• User manuals: If you still have them, they may include serial numbers
• Witness statements: Friends or family who saw the items can provide declarations

Understanding Your Coverage

Homeowners and renters policies typically cover theft, but coverage is subject to important limitations and exclusions.

Personal Property Coverage

Your policy's Coverage C (Personal Property) covers theft of personal belongings. Key points:

• Coverage limit: Usually a percentage of your dwelling coverage (often 50-70%)
• Per-item limits: Special categories have sublimits regardless of actual value
• Replacement cost vs. ACV: Your policy may pay replacement cost or depreciated value
• Deductible: You pay this amount before insurance kicks in

Common Sublimits on Theft Claims

Most policies cap coverage for certain high-theft items. Typical sublimits include:

If you have valuable items exceeding these limits, you should have scheduled them on your policy (added specific coverage) before the loss. If you did not, your recovery may be limited.

Theft Away From Home

Most homeowners policies cover theft of personal property anywhere in the world, not just at your home. However, coverage for property away from home is often limited to 10% of your personal property coverage limit. Rental car break-ins, luggage theft, and hotel room theft may be covered.

Common Reasons for Theft Claim Denials

Insurers deny theft claims more often than many policyholders expect. Understanding common denial reasons can help you avoid pitfalls.

1. Lack of Proof

The most common reason for denial is insufficient proof of ownership or value. Insurers may claim you have not adequately documented that you owned the items or what they were worth.

2. No Signs of Forced Entry

Some policies exclude theft that does not involve visible signs of forced entry. If a thief entered through an unlocked door or window, your claim could be denied. However, this exclusion is not universal, so check your specific policy language.

3. Mysterious Disappearance

Many policies exclude "mysterious disappearance"--items that simply vanish without evidence of theft. If you cannot prove a burglary occurred, the insurer may characterize your loss as mysterious disappearance.

4. Fraudulent Claims Suspicion

Insurance fraud investigators may become involved if your claim seems inflated or inconsistent. Signs that trigger investigation include:

• Very large claims shortly after purchasing or increasing coverage
• Inconsistent statements about what was stolen
• No police report or delayed police report
• Previous theft claims
• Financial difficulties

Fighting Unfair Theft Claim Denials

If your theft claim has been denied or underpaid, you have options to fight back.

Step 1: Request a Detailed Written Denial

Get the denial in writing with specific policy language cited. This helps you understand exactly what you need to overcome.

Step 2: Review Your Policy

Read the theft coverage section and exclusions carefully. Look for:

• Definition of "theft" in your policy
• Whether forced entry is required
• Proof of loss requirements
• Deadlines for submitting your sworn proof of loss

Step 3: Gather Additional Documentation

Collect any additional evidence that addresses the insurer's stated reason for denial. This might include:

• Additional photos showing items before the theft
• Witness statements from people who saw your belongings
• Appraisals or valuations for high-value items
• Police report and any investigation updates

Step 4: Submit a Formal Appeal

Write a detailed appeal letter that addresses each denial reason. Attach all supporting documentation and cite specific policy language that supports coverage.

Step 5: Consider Professional Help

For significant claims, consider hiring a public adjuster or consulting with an attorney. They can negotiate more effectively and know how to build compelling claim files.

Replacement Cost vs. Actual Cash Value

How your policy values stolen items makes a significant difference in your payment.

Actual Cash Value (ACV)

ACV is the replacement cost minus depreciation. A 5-year-old TV worth $1,000 new might have an ACV of only $400. This is often the default coverage.

Replacement Cost Value (RCV)

RCV pays to replace stolen items with comparable new items, without deduction for depreciation. This coverage costs more but provides significantly better protection.

How RCV Typically Works

1. Insurer pays ACV amount initially
2. You purchase replacement items
3. You submit receipts to insurer
4. Insurer pays the difference between ACV and actual replacement cost (up to policy limits)