Does Homeowners Insurance Cover Items in my Car?
Knowing what is included and what is not included on your homeowners insurance is the responsibility of the homeowner. Every policy is different, like hard wood flooring and laminate, and some include coverage for certain things while others do not. One thing that you may be confused about is whether homeowners insurance covers items in your car. This will depend on your policy. However, even if you are not covered by your homeowners insurance, you will most likely be covered through your auto insurance for damage and theft of property in your vehicle.
To find out whether your homeowners insurance covers items in your car, you need to look under Coverage C- Personal Property. This will give you a list of what is included and what is covered. You may find that items that are in your car, in your office, in your luggage or in your hotel room when travelling are still covered, even though they are not in your house.
In many policies you will find that items that are outside of your home are still covered, but only at the value of 10 percent. What this means is that if your laptop is stolen from your car, you will only be reimbursed 10 percent of the replacement or actual value cost. This is not going to be a lot. Furthermore, keep in mind that you need to keep the doors locked on your car. If someone can open the door and steal your items, then you are probably not going to be covered.
Car and Homeowners Insurance
If you are only covered for a small portion of the costs to items in your car, then it might make more sense to check your auto insurance policy and see what limitations are in place there. If you have loss of use coverage then you probably will be able to claim the items in your car for a little more than 10 percent of the replacement cost. However, again, this all depends on the policy you have in place.
Claiming items that are stolen from your car can be tricky. This is because, before you can make a claim and get the compensation, you will need to pay a deductible. Furthermore, by making a claim, you can expect your premiums to go up. What this means is that it may not be worth it in the end.
To decide whether you should make a claim you need to do the math. Let's say you have a $500 deductible on your homeowners insurance and your $1500 laptop was stolen from your car. If you are on a policy that only offers 10 percent back from items in the car, then you will only get $150 back, if that. What this means is that it is actually not worth it to make a claim, pay the deductible and risk higher premiums.
Most homeowners insurance policies will cover items in your car but it may not be as much as you hoped. If you do spend a lot of time on business trips and have a lot of items in your car, then make sure you always lock your door. Invest in an alarm system and read the fine print. You may wish to take out additional coverage on either your car or homeowners insurance so that you are being covered for 100 percent of the costs if items are stolen or damaged from inside your car. Furthermore, make sure you look into replacement and actual value costs when choosing your policy as this will heavily impact how much you get back from items in your car.