Is theft of cash covered by Home Insurance?

Are you concerned about the number of burglaries in Washington state and wondering how well your homeowners’ insurance covers you, especially if you keep cash in your home? If you’ve been contemplating this, you’re not alone. According to the Spokesman Review, Washington state has 548 burglaries per 100,000 residents. In 2022, the state saw 43,481 burglaries, which was a 6 percent increase from 2021, and those thefts resulted in a loss of $6,195 on average. Having homeowners insurance can help offset these losses. Let’s take a look at what homeowner’s insurance covers and if it covers the loss of cash.

What Homeowners Insurance Covers in the Event of a Theft

Homeowners can expect their homeowners’ insurance to provide them with a certain amount of money in order to replace items that were stolen in a burglary and to repair any damage caused by the criminals.

Repairing Your Home

Burglars often get into homes by kicking in doors and breaking glass. If your home is damaged during the burglary, your homeowners’ insurance policy should provide you with the money to repair or replace items that were broken during the break-in.

Replacing Your Belongings

Burglars tend to steal electronics, computers, jewelry watches, purses, furniture and clothes. However, some criminals will go so far as to steal food and toiletries. They may even steal extra sets of car keys and lawn equipment. Homeowners should also be aware that criminals are no longer averse to entering children’s rooms. This is because other than random toys and clothes, many parents also buy their children expensive gaming systems and other electronics that are attractive to burglars.

Replacing Some Cash

It goes without saying that it’s not a good idea to keep a lot of cash in your home. Many insurance agents and legal professionals would rather you store your cash in safe deposit boxes, CDs, checking accounts or IRAs rather than in your home. This is because if someone breaks into your house and steals your cash, it’s unlikely that you’ll receive the full value of the cash from your insurance company. Insurance companies typically list cash has a sublimit. This means that there is a limit to how much can be recovered if the asset is lost. Depending on how your policy is worded, you may receive a percentage of the cash that was stolen up to a maximum amount.

How to Catalog Your Items in the Event of a Burglary

When it comes to protecting your items, it’s best to take pictures of them and keep an itemized list that includes the name of the item, the make and model, the purchase price and an image of the item. You’ll also want to keep the receipts. However, since the print on most paper receipts fades, you’ll want to take a picture of it. This home inventory should be stored in multiple places, including on your phone and computer as well as in paper form in a safe. Having this list can help if you have to file a claim for theft.

Know How Your Policy Is Worded

It’s important to read through your homeowners insurance policy in order to understand how it’s written. Some policies have sub-limits. These are specific dollar amounts for certain types of losses. In the event of cash, the sub-limit may be a certain percentage of the cash up to X amount, and that mysterious amount may not be more than $200. For something like jewelry, your homeowners insurance may only cover a couple of thousand dollars. This means that if you have a large jewelry collection, you may need to take out a separate policy to ensure that it’s fully covered.

How to File a Claim for a Burglary

If your home is broken into, your first step should be to call the police and file a police report. Once you file the police report, call your insurance agent and begin the process of filing a claim. Your insurance company may request certain documents, like a copy of the police report and any pictures or information you have on the items that were stolen. You’ll also want to take pictures of any damage that the burglars caused to your home. Your insurance company will need all of this information in order to accurately calculate the value of your claim. It’s also important to note that your deductible will be subtracted from the final amount.

Getting Home Insurance with Boyd Insurance Brokerage Inc, in Spokane, Washington

If you need homeowners insurance in Spokane Washington, Boyd Insurance Brokerage Inc. can help you find a homeowners policy that meets your needs. We do this by listening to the items you want covered, asking a few questions and answering your questions. Once we have a good idea of the type of policy you need, we look through our inventory in order to find you the best coverage for an affordable price. We can even help you find affordable car, boat and recreational vehicle insurance.

To learn more about homeowners insurance and to get a quote, call us at 509-340-2693.

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