Does Homeowners Insurance Cover Theft?

Does Homeowners Insurance Cover Theft?

Does Homeowners Insurance Cover Theft
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Recently published statistics by the Canadian state of criminal justice indicate that theft of personal property is the most frequently reported crime at 34%. Theft of household property comes in third at 12%, with vandalism and break-ins ranking fifth and sixth respectively.

Even though Canada ranks favorably among the safest countries in the world on the Global Peace Index, property crime continues to be a considerable risk particularly among homeowners. This highlights the need to have homeowners insurance in order to protect your home against these inherent risks. is the leading website in providing insurance information. Read through this post to enhance your understanding of homeowners insurance.

What is homeowners insurance?

Homeowners insurance is a property insurance policy that covers your residence together with furnishings and other household items against potential losses and damage. This insurance policy also provides liability coverage against accidents that might occur to the occupants of the home. For instance, when a guest sprains their ankle when walking down your staircase, the homeowners insurance will cater for their medical expenses up to your coverage limit. 

Do I need homeowners insurance? 

It is easy to be carried away by the safe living conditions in Canada. However, 6,122.77 criminal offenses per 100,000 residents is still a lot of crime in a population of nearly 40 million people. Forget the crime rate, there are a lot more risks that a good homeowners insurance can insure your property against. 

Wildfires for instance, are common occurrences in Canada. It is reported that the densely forested regions of Canada experience about 8,000 wildfires annually particularly during the dry seasons. These raging wildfires are responsible for the destruction of personal properties and infrastructure worth billions of money, sometimes even claiming human lives.

The 2016-17 Fort McMurray wildfires for instance, razed down 80% of homes within the region bringing in losses of about CA $9.9 billion in direct and indirect costs. This single devastating incident generated approximately 60,000 insurance claims amounting to about CA $3.8 billion. Nearly all the claims have been settled so far. This alone represents thousands of households helped back to their feet. That’s how efficient and essential a homeowner’s insurance cover is! 

Does home insurance cover theft?

A typical homeowners insurance covers the following incidences:

  • Damage caused to the interior of the insured property. 
  • Damage caused to the exterior of the insured property.
  • Damage or loss of personal belongings in the insured property.
  • An injury that occurs to residents or guests within the confines of the insured property. 

As such, loss or theft of personal belongings from the insured property is certainly covered in a regular homeowners insurance. Some homeowners insurance cater for temporary living expenses incurred while your insured property is being repaired or rebuild. This includes hotel accommodation costs or rent payments in case you are forced to rent an apartment temporarily. 

Does home insurance cover bike theft?

Yes, home insurance covers bike theft. You don’t need a separate cover for your bike to feel safe. A typical homeowners insurance will reimburse you in case your precious bike is stolen from your home. 

What is not covered in homeowners insurance? 

It is absolutely necessary to read the fine prints of your homeowners’ insurance contract to understand the risks that are covered and those that are not. Asking a lot of questions before signing the policy document will save you a great deal of disappointment later when you are filing for a claim. 

We have already mentioned the basic risks covered by a typical homeowners insurance. Understand that the exemptions in the policies vary from one insurance company to another. However, the most common exemptions from homeowners’ insurance coverage include established acts of God and acts of war.

Regular homeowners insurance covers a wide range of acts of God like lightning, wildfires, smoke damage, thunderstorms, strong winds and hail. They however, draw the line on severe catastrophes like earthquakes and hurricanes.

What is renters insurance?

Renters insurance is a policy designed for individuals living in rented apartments. The policy covers the renter’s personal belongings against loss or damage. In case of losses or damages in the rented property, the insurance provider covers for the cost of the losses or damages.

Besides loss or damage of personal belongings, the policy also has liability coverage. This usually takes effect when you damage or lose someone else’s property within your apartment. It also covers additional living expenses like hotel costs when the rented residence is unlivable. 

Does renters insurance cover theft outside the home?

Yes, renters insurance cover theft outside the home. Most renter’s insurance policies cover goods stolen or damaged outside the insured apartment. This might include household goods in transit or in a storage unit. Note that high-value goods are excluded from this cover. However, you should discuss this with your broker before purchasing the policy.

If you have any concerns about homeowners insurance, reach out to us. will provide you will all the information that you might need about your home insurance cover.


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