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