Are Lost Items Covered Under Homeowner's Insurance?

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When you lose an expensive piece of property, you may never see it again, but that does not necessarily mean that you cannot be reimbursed for it afterward. Depending on the type of homeowner's insurance coverage that you have, you could be paid back for the property that is lost.

Personal Property Coverage

  • A typical homeowner's insurance policy gives the homeowner some type of coverage for personal property. This insures the contents of the home rather than the actual structure of the property. Each policy will have a specific coverage limit for the amount of money that it will pay when personal property is damaged. The policy can also pay you back for the value of personal property that is lost or stolen. This can help protect valuable items like jewelry and electronics.

Preparation

  • Although you can turn in lost items on your homeowner's insurance, you may not always be reimbursed for them. If you want to increase your chances of getting your claim approved, you need to document the fact that you owned the item before it was lost. This can be done by taking an inventory of your possessions and then giving a copy of it to the insurance company. You could also take a photo or video inventory of your possessions and keep them in a safe place for future reference.

Riders

  • While a regular homeowner's policy will provide coverage up to a certain limit, you may need to purchase an additional rider for very expensive items like an expensive piece of jewelry. This provides additional coverage for that specific item. Then if it is lost, the insurance company can pay for that particular item. The extra rider will add a bit to your homeowner's premium.

Considerations

  • When you lose a piece of personal property, it may not always be in your best interest to file a claim for it on your insurance. In some cases, you may need to pay a deductible before the insurance company will reimburse you for the property. If the property is not worth much more than the deductible amount, it does not make sense to move forward with the claim. Turning in too many claims can raise your insurance rates or result in getting dropped from coverage.

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