Homeowners insurance typically covers two types of property after a break-in occurs:
This is great news for anyone who’s had their home broken into. You’re covered!
Unfortunately, there’s also some bad news: homeowners insurance comes with a few “gotchas” that homeowners should be aware of before filing a claim.
This article looks at the two types of coverage more closely. We’ll also share some tips that a homeowner can take to further protect themselves from break-ins and a bad experience with their insurer.
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As we mentioned above, there are two types of insurance coverage pertaining to home break-ins. Coverage A and B (for real property) and Coverage C (for personal property).
Dwelling Coverage (Coverage A & B)
Coverage A, also known as dwelling coverage, insures against damage to the home. Coverage B insures against damage to other structures unattached to the home, like guest houses or detached garages.
Some items covered under dwelling coverage (both A and B) include:
Personal Property Coverage (Coverage C)
Coverage C, known as personal property coverage, insures against damage and theft to personal property found within the home or even outside the home in some cases.
Most homeowners insurance covers the homeowner, the homeowner’s family, and any guests who have property in the house.
Common items insured under Coverage C include:
Dwelling and personal property coverage come with restrictions that every homeowner should know about, including:
Homeowner’s insurance policies come with coverage limits, i.e. the maximum amount the insurer will pay out in the event of damaged property. These limits are often based on a percentage of your home’s value (which can be increased upon request).
Importantly, the coverage limits for your dwelling (under coverage A) are different than the limits to your personal property (coverage C). For example, if a thief broke your window and stole some jewelry, your homeowners insurance would cover both under different coverage limits.
Some differences between dwelling and personal property do apply to the standard insurance policy:
Depreciation (ACV Vs. RCV)
Your homeowners insurance will specify one of two reimbursement methods in your contract to determine what your property is worth:
Replacement cost value, or RCV, is clearly the best option when it comes to insuring your property.
Homeowners insurance may not cover the homeowner under certain circumstances, including:
In addition to these, some personal property is never covered under a homeowner’s insurance policy:
Three additional ways you can protect yourself from burglaries include:
Change Your Insurance Package
One option that a homeowner has to increase coverage is to purchase a more expensive insurance tier or package.
This option will increase the homeowner’s monthly insurance bill, but will deliver better coverage across the board (Coverage A, B, and C).
Purchasing a new insurance package may be worth it for some homeowners. But others are looking to insure specific items which are so valuable that a standard homeowner’s policy won’t cover them.
That’s when you need a higher sublimit...
Increase Sublimits for Expensive Items
Sublimits are coverage limits for particular types of property. For example, your homeowners insurance may specify a sublimit of $2,000 for jewelry. That means you’ll receive $2,000 max for stolen jewelry, even if the amount stolen is substantially higher than that.
Many different types of property are covered in this fashion, including
The good news is you can request a sublimit increase for the type of property that needs additional coverage. Sublimit increases are a great way to protect some of your most valuable items.
Keep Property Records
The more information you provide to the police and the insurance company, the more likely you are to recover the full cost of what you lost. Keeping a property record of your most expensive items is a critical step toward coming out on top after you’ve been burglarized.
The best records include a mix of:
We could all use some extra protection in the event of a burglary or break-in. That’s why so many customers choose Ackerman Security, the only company that pays you if you’re burglarized.
If you’d like to learn more about Ackerman’s 200% money back guarantee, you can give us a call at 800.552.1111, or schedule a time to meet with one of our friendly security consultants.