Home Insurance and Burglary

We look fondly upon the days when we could leave our front doors unlocked and windows wide open without hesitation. Today, with the high prevalence of home burglaries, most homeowners would not dream of stepping out of the house without making sure every window and door is locked shut.

In 2006, thieves burglarized 1 out of every 39 homes. According to the FBI, a home, condominium, or apartment is burglarized once every 15 seconds. Strikingly, most home break-ins occur during the day because that is when homes are more likely to be vacant.

Protecting Your Home and Personal Property from Burglary

There are several steps you can take to deter a thief from attempting to break into your home, including the following:

• Remove shrubs and bushes where burglars can hide (leave shrubs with thorns)
• Install outdoor motion detector lights around your house
• Set up a security alarm system with a loud alarm that will scare away the intruder and alert neighbors to the break-in in progress
• Do not tell strangers your daily schedule
• Do not tell strangers about the valuable possessions in your home
• Always lock all the doors and windows when you leave your house
• Use the peephole in your front door to identify visitors.

Your Homeowner Insurance Policy and Theft

Most standard homeowner insurance policies cover theft; and most insurance carriers provide coverage from 50% to 70% of the amount of insurance you have on the home’s structure. To determine if this is sufficient to cover the cost of your personal belongings, it is strongly recommended that you take inventory. List each item, the serial number, and its value. Photograph and/or videotape your personal belongings, and keep such records, along with receipts, in a fireproof safe.

Actual Cash Value and Replacement Costs

Most home insurance policies have replacement cost coverage on the home and actual cash value coverage on personal property. Actual cash value is the cost to replace the item, minus depreciation. Replacement cost, on the other hand, gives you more protection. Instead of paying the depreciated value of an item, replacement cost policies pay enough to replace your stolen item with the exact same item or something as close to it as possible.