How Renters Insurance Can Help You Deal With Theft

December 7, 2021

If you ever experienced a theft or robbery, you are familiar with the feeling. Such experience often triggers regret and anger. And as a result, people feel the need to enhance the protection of their property. 

With 6.92 million property crime cases reported countrywide in 2019, it is only fair for people to feel concerned and look for efficient coverage options. Unfortunately, replacing the stolen high-priced objects can be tricky, especially if they haven’t been adequately insured.

And while no one wants to handle the consequences of a break-in and theft, taking out appropriate insurance coverage can bring great comfort and relief.

Today, homeowners might outnumber renters, but it does not mean that renting is out of the picture. On the contrary, demand for rentals is expected to increase over several years. The current 44 million rented households might turn into 88 million in a year. 

If you are renting a place, you need to ensure that your possessions are safe. Below you will find the most commonly asked questions about how your items can be protected by renters insurance under various circumstances.

Does Renters Insurance Cover Theft Outside The Home?

The essential characteristic of renters insurance is protecting your private property from mundane causes of unpredictable robbery and housebreaking. 

So, does renters insurance cover theft outside the house? Brace yourself because it indeed does. With renters insurance, burglary can take place anywhere other than your home. And the best thing is that your items will still be covered by the policy. You can rest assured that you won’t have to replace the item or compensate for the loss out of your pocket even if your laptop, phone, or tablet are snatched from you at a snack bar or coffee place. 

But be mindful that many policies tend to cap the coverage at a specific percentage. The percentage depends on the class of your assets. For instance, if your coverage limit is $29,000 and the cap is set at 10%, the coverage limit for objects stolen will be $2,900.

Does Renters Insurance Cover Stolen Cash?

That is a relevant question, especially if you are accustomed to keeping hard cash.

If you are, renters insurance might come in handy, but only if you do not carry more than $200. Unfortunately, the cash coverage cannot be unlimited due to possible cases of fraudulent claims. 

Looking on the bright side, if you were to experience cash theft within the set limit, your claim would be immediately satisfied, and the sum would be paid in full without the deductible. That might seem like a victory.

However, if someone lifted your bag with gadgets and hard cash, the claim would include all items. And that means that the total value would be reduced due to the applied deductible.

Is Bike Theft A Qualifying Event?

There is nothing to worry about if you are a bike enthusiast because renters insurance has your back.

As is the case with other personal goods, the theft of your bike can take place anywhere other than your home. No matter the location, you can be confident that the policy will help you replace the old ride with a new one. But bear in mind that the cost of the new bike should be equivalent to the stolen one.

In this case, keeping the receipts can come in handy, especially if you want the claim to be processed fast. 

Bike theft can still be a heart-rending event. That is why you should make every effort to keep it safe. Here are the recommended preventative measures:

  • Use a bike lock and check how well you fasten it each time you park.
  • Keep the space between the lock and the bike small.
  • Keep your bike safely stored in your car. Consider hiding it well in a trunk.
  • Register your ride with 529Garage so that you can get it back if someone finds it abandoned.

What If Your Roommate Is a Thief?

That is an awkward and delicate situation if your roommate is a thief, especially if you included them in your policy. 

Let’s take a closer look at hypothetical situations. If your roommate is your other half covered by the policy, you will have to deal with the issue by yourself. Sadly, the policy cannot cover your belongings in this case.

Your insurance can cover the unlawfully taken items if your roommate is not included in the policy. However, you will have to file a police report and name your roommate as a suspect. Why is it important? To successfully process your claim, the provider must verify that it is an official police matter. That way, you can get compensation.

How to Reduce the Likelihood of Loss or Theft

Naturally, policyholders should not ignore their responsibilities like securing their property. 

And while it is impossible to make theft entirely preventable, you need to make sure that you did everything to make it challenging for the burglar. 

Here are the options to consider:

  • Draw up an inventory list of all the goods, chattels, and relevant documents and receipts.
  • Set up a security system.
  • Utilize intelligent outdoor lighting.
  • Install secure and durable entry doors.
  • Use window covering options where needed.
  • Install locking mechanisms for pet doors.

Remember that renters insurance cannot shield you from every existing threat or loss. That is why you need to do your part first, and then you can pick the most suitable insurance options that meet your needs. Stay safe, and don’t forget to lock the doors and zip your bags!

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.


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