Is Car Theft Covered by Home Insurance?

By
Mortgage and Lending with Olympus Labs

When someone purchases a car or a house, it is critical to protect these investments from loss. This is the purpose of insurance. While most people assume they are going to be safe at home, this isn’t always the case for the car that is sitting in the driveway. It is possible that someone might have their car stolen right out from under their nose. In this case, some people might be asking whether or not the vehicle theft is covered under their homeowner’s insurance policy. This might be some useful information to know.

Most people have a rider in their home insurance policy that protects items such as jewelry, computers, and TVs against theft or loss. On the other hand, it is a common misconception that people think if their car is stolen from the driveway that their homeowner’s insurance policy is simply going to cover it. It is critical for everyone to read the fine print. Each policy is different and some homeowner’s insurance policies might not cover this type of loss.

Typically, when a car is stolen, even if it occurs at home, this is covered by the auto insurance policy. An auto insurance policy should cover the vehicle in the event of an accident, damage from a natural disaster, or even theft; however, there are different types of auto insurance plans. Those who have a “liability only” insurance policy are going to be out of luck. This is the minimum auto insurance policy that someone has to be able to drive. This policy is not going to replace the policyholder’s vehicle even in the event of a simple accident. It certainly will not protect the car against theft.

On the other hand, those who have a comprehensive insurance policy should be able to count on their auto insurance company to pay to replace the vehicle if it is stolen. Comprehensive covers all layers of auto issues including liability only and collision. This is why it is important to invest in a comprehensive insurance policy. Those who forgo this important protection might be at a total loss if their car is stolen. If a car is stolen, it is also helpful to check previous countries of registration. This may provide helpful information for finding a car that might have been stolen.

Fortunately, there is a way that homeowner’s insurance will step up to help someone whose car has been stolen. While the car itself is not going to be covered, someone’s contents might be covered under the homeowner’s insurance policy. For example, if someone had a computer in the car when the vehicle was taken, the computer is expensive and needs to be replaced. Other expensive items that might be in the car include a radio, stereo system, or even jewelry. These contents should be covered under a homeowner’s insurance policy. This can be particularly helpful since auto insurance may not cover these valuable possessions in the event of theft.

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Thank you for some useful info on auto and home insurance.

Jan 23, 2020 11:01 PM #1
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