Online shopping has taken off immensely over the past few years. Due to this, there are many homes that are receiving packages shipped directly to them. Due to this uptick, unfortunately, a lot of package thefts have begun to occur. So, will your homeowners insurance cover these stolen packages?
If your package contains a high-value item and costs more than your deductible, your homeowners insurance will cover the theft of the package. If your package is not a high-value item or costs less than the deductible, it will not be covered.
Knowing that some of your major purchases are safe through homeowners is very reassuring, but what about the packages that are not? Below, we cover alternative insurance options you can utilize that scale beyond your home insurance.
- Your homeowner’s insurance will cover the theft of high-value packages. Personal property coverage C will kick in.
- If the package that was stolen contained items that cost less than your deductible, it is best not to file an insurance claim.
- Filing too many claims can cause your home insurance premium to go up.
Preventing package theft
In order to combat package theft, you can make certain home improvements. Not only will these improvements save you from porch pirates, but they can also provide added security to your home, which could save you money on your home insurance policy too. Here are some great ideas to try for yourself.
- Use security cameras. Using security cameras or a home surveillance system will provide you with extra eyes on your property. These cameras can help identify thieves and they can also save you money on your home insurance. Live security that alerts authorities if an emergency event occurs will sometimes provide a discount on your home insurance policy too.
- Insured mail. Mail providers like USPS, UPS, FedEx, and DHL offer insurance for packages. These coverages allow customers to file a claim if a package does missing and is not delivered. It reimburses them for the cost of the package so they can reorder.
- Lockbox. Many post office locations have lock boxes or post box options for residents. These ensure your packages are delivered safely to their final destination. Additionally, they are insured through the post office’s commercial insurance policy, so if you experience a loss due to a peril that happens at the post office, it is covered.
These steps can help prevent an unfortunate theft. This will prevent a claim from appearing on your insurance history and will also save you from losing money on items that you purchased but never received.
Will renters insurance cover stolen packages?
If you are a renter, you may also wonder if your rental insurance will cover your stolen package. Similar to that of a homeowners insurance policy, your renters insurance will cover stolen packages as personal property. There are similar caveats to consider though.
For example, just like a home insurance policy, a renters policy will have a deductible. Typical renters insurance policies have deductibles between $500-$1,000. So, if your package is valued at less than the deductible, your insurance company will not be sending a check.
However, if you buy a big-screen TV for $3,500 online and it is lost or stolen from your porch you can file a claim. This high-value item exceeds the typical standard deductible. If the claim is accepted, you will receive a check for $2,500. This is the total remaining cost after the deductible has been factored in.
While this isn’t great for covering the entire loss of the package, just as a homeowner can, renters can seek alternative ways to insure their online shipments. Many carriers provide protection plans in case of theft. These protection plans come at a small cost to the customer but cover the full total of the loss in the event of a theft.
Keep your premium in mind
Before you file a claim with your homeowners insurance or renters insurance for a stolen package, stop and think about your premium. Every time you file a claim with your homeowners or renters insurance, it stays on your record. This record is used to create your annual policy premium.
The more claims you file with your insurance agency, the more likely your annual premium will go up in cost. This is because multiple claims increase the risk factor associated with your home. Higher risk creates higher ISO scores, which will directly impact the cost to insure your home and its insurance eligibility.
In order to keep your risk lower, it is important to stop and consider the stolen package and whether or not it is worth the cost in the future. If the item is very high-value, and you spent a lot of money to purchase it, and it is much more than the deductible, a claim makes sense. If it is for smaller items and electronics, the claim isn’t worth the future expense.
Prevention is best
The best solution to package theft is to prevent it. Implementing security measures, requesting in-person delivery, and using lockboxes will help to prevent potential theft. It will also help prevent more claims from occurring with your insurer which lessens your future policy premium.
