No one likes to think of someone stealing from them. Anyone you invite into your home should be trustworthy, and you hope anyone not invited into your home will stay out. Unfortunately, theft occurs regularly to even the most careful renters and homeowners. Renters insurance is required by most landlords in part due to this very reason. Renters insurance covers disasters such as fire, lightning, vandalism and theft of your personal possessions. But what if one of the personal possessions is your wallet or a bundle of cash?
Renters insurance does provide compensation for stolen cash, but it's limited. Renters insurance has exclusions and limits when it comes to certain items. Expensive items such as jewelry, fur and art, for example, have limited coverage under renters insurance. These can be covered by adding an additional policy floater, however.
Common Renters Insurance Exclusions
There are two sides to renters insurance: liability and personal possessions. Personal possessions coverage is the coverage that provides compensation if your personal belongings are lost or damaged. There are certain dangers it doesn't cover against, however. Common exclusions include:
- Flood damage
- Earthquake damage
- Coverage for furs, jewelry, art and electronics
- Intentional damage or loss
- Loss while the policyholder is committing criminal acts
- Cash and important documents (bank notes, bullion, gold, silver, platinum, coins, smart cards, etc.)
Some of these can be covered under additional floaters or policies, such as floods and earthquakes. Others — such as cash — can only be covered by the limited coverage already offered by a renters insurance policy.
An average renters insurance policy covers $10,000 in personal possessions coverage. This is up to $10,000 overall that you may be able to receive in compensation. Part of this can cover cash. Just like computers or jewelry, cash has a "sublimit," meaning it has another, somewhat hidden limit specifically for compensation of cash that is stolen.
The average policy only covers $200 of stolen cash. For example, if someone breaks in and steals $400 while you're gone, your renters insurance policy will still only cover a maximum of $200 for the stolen cash.
Do You Have To Pay A Deductible For Stolen Cash?
Thankfully, a deductible isn't required for stolen cash. The deductible is the amount you pay before receiving compensation. This amount is often higher than $200 for a renters insurance policy. If the cash is stolen along with other items, however, you will have to pay a deductible in order to receive compensation for everything. You may choose to only file a claim for the cash to avoid paying your deductible, but this means that you will not receive compensation for anything else that was stolen.
Keep in mind that you will only receive compensation for stolen cash if the incident is proved to have happened and the insurance agency agrees that the theft occurred. Inaccurate claims could lead to not receiving compensation or even having your renters insurance policy canceled. This is, in part, why there is a limit on coverage for cash under renters insurance. Insurance agencies want to protect themselves from paying out false claims — especially expensive claims. A single person may have thousands of dollars in gold or cash hidden away. If they file a claim that it was stolen, it's hard to prove theft in the first place.
Even if the claim is approved, insurance agencies want to limit the amount they must pay for claims. Theft claims are hard to prove and hard to disprove, thus the $200 limit on cash. The same rules apply for other limited items, such as jewelry and art.
Start Your Quote