How Does a Burglary Affect Your Home Insurance?

Homeowners’ insurance covers damages to your home and losses associated with stolen personal items, with theft being a commonly covered loss. However, there are limitations depending on the type of coverage purchased.

Actual Cash Value (ACV) compensates for the depreciated value of stolen items, which may not fully cover replacement costs.
Replacement Cost Value (RCV) policies, on the other hand, provide compensation for the cost of buying replacement items at today’s prices, providing a more comprehensive coverage option. A Scheduled Personal Property policy can also help ensure that expensive items like jewelry and art are covered.
Scheduled personal property coverage is necessary for expensive items like jewelry or art, requiring you to add them to your policy for adequate protection.
Deductible: The deductible you choose for your home insurance can significantly affect the cost of coverage. Discuss with your agent to find the right balance between your burglary risk and the cost of coverage.

Home insurance rates usually increase after a burglary claim, with the extent of the increase depending on factors like your location and the value of the claim. You can potentially minimize these increases by installing security equipment and taking advantage of available discounts.