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Millions of packages are swiped from porches every year, especially around the holidays. According to data from Safewise, about 260 million packages disappeared from porches across America in 2022. That’s about
50 million more stolen packages than 2021, when 210 million packages were swiped from porches nationwide. And while living in an area with a high theft risk can have an impact on the cost of your homeowners insurance policy, having the right coverage in place may help.
Depending on the limits, the personal property coverage in a homeowners insurance policy may cover some surprising losses, like packages that were delivered to you or your family but are stolen from the porch or after being placed inside your home. But is it worth it to make a claim on your homeowners insurance policy if you’re a victim of package theft? And when will your homeowners insurance cover package theft? Here’s what you should know.
Package theft statistics
As of 2022, about 79% of Americans had been victims of package theft in the last 12 months, according to Safewise. Over half of these Americans had more than one package stolen in 2022. And, more than 3 in 4 Americans have been a victim of package theft at some point in their lives.
The total cost of these types of package theft losses can be pretty significant, too. According to Safewise, about 40% of all packages stolen are valued at between $50 to $100, which resulted in an estimated loss of $19.5 billion in 2022.
Does my homeowners insurance cover package theft?
If your item was stolen from your doorstep, you may be tempted to file a claim with your homeowners insurance. But does homeowners insurance cover packages that are delivered to your home? The short answer is yes – homeowners insurance typically will cover stolen packages.
However, the value of the item that was stolen may not be enough to justify a claim since your deductible will need to be paid as part of the claim. The standard deductible amount for home insurance is between $500 and $1,000, and in many cases, the packages that are stolen contain items that aren’t worth more than the cost of your deductible. As such, you should be aware that unless the package is valued higher than your deductible limits, there will not be a monetary recovery from your insurer.
That’s why it’s important to understand the limits in your policy as well as your deductible. If the value of your stolen package is less than what you would be required to pay for your deductible, it may not make much sense to file a claim with your homeowners insurance for the stolen item.
How does homeowners insurance cover theft of packages?
Homeowners insurance generally covers package theft under personal property coverage. If a package is stolen from your porch and it is insured under your homeowners insurance, you might be able to file a claim to get reimbursed for the item.
Understanding just what your policy does cover if these items are stolen may help guide your discussions with an agent. In addition, some homeowners insurance policies exclude theft of packages that are left unattended, so be sure to check your policy documents to see if this is the case.
In most cases, however, homeowners insurance does cover packages that are stolen from your porch, so you may be able to get some compensation for any items that are taken.
Insurance limits for theft
Homeowners insurance typically covers most of your personal property, but there are certain types of property that have lower limits. For example, your personal property is usually covered at 50 to 70 percent of your dwelling coverage amount. So if your home’s physical structure is insured for $300,000, your personal property is typically covered for $150,000 to $210,000.
Though homeowner policies vary, most do specifically provide coverage for lost, stolen or damaged precious items, such as jewelry, high end watches, furs, firearms, fine wine and antiques. Be careful, however, since there are also typically standard limits which apply to certain of these. For example:
- Jewelry – It is not uncommon to see a single-item limit of $1,500 for jewelry. Items valued greater than the per-item limit can be covered through an endorsement, but would typically require an appraisal process to be completed after you’ve received your item.
- Collectibles – baseball cards, coins and stamps will typically not be fully covered for the true value without additions to the standard homeowner policy.
Additionally, it is important to understand the reporting requirements in a policy. Most homeowners policies require that the homeowner file a police report for the stolen property and also report a theft or other loss within a certain period of time from the discovery of the loss. Failure to do this may result in the denial of an entire claim.
Does homeowners insurance cover holiday packages stolen from your car?
If you regularly leave packages in your car, or if you leave holiday packages in your car during certain times of the year, you may be wondering whether your homeowners insurance may cover theft from your car. The answer will typically depend on what type of personal property coverage you have.
Personal property coverage usually protects these items even if the theft occurs away from your home. However, keep in mind that items kept away from your home may have a lower coverage limit, usually 10% of your personal property coverage. For example, if you have a $25,000 personal property coverage limit, your insurer may only pay up to $2,500 total if your packages are stolen from your car.