What Is Theft Insurance?

With only about 1,600 larceny-theft incidents per 100,000 inhabitants and an ever-declining larceny-theft rate, you might not think the risk is worth the money. However, for those willing to protect property and belongings, theft insurance can be a savior.

The term ‘theft’ encompasses robbery, theft, and burglary, so you don’t have to worry about misinterpretation:

  • Robbery is stealing by force, including street mugging.
  • Theft is stealing something to keep it for yourself (for example, pickpocketing or stealing from a shop).
  • Burglary is entering someone’s property illegally to steal from it.

What Does Theft Insurance Cover?

Theft insurance can cover all your property and belongings or only a part of it. A specific theft insurance plan may cover:

  • Gold, silver, and other precious metals.
  • Belongings stolen by employees, housemaids, etc.
  • Things taken during natural calamities, wars, terrorist acts, strikes, etc.

Both theft insurance and homeowners insurance have a coverage limit, which is the maximum amount you can get paid toward a claim. Besides, there’s usually a deductible, which is the amount of money you have to pay before your insurance plan starts to pay.

How Much Is Theft Insurance?

To reduce an insurance premium, you can

  1. Choose the plan that covers the most valuable assets, but not in excess.
  2. Take preventive measures, such as installing an alarm, safety devices, CCTV cameras, fencing, etc.
  3. Reduce the level of theft risk in the eyes of the insurer by any available means.