Wondering if your home or tenant insurance policy covers theft outside the home? If you don’t know the answer, you’re not alone. Many Canadians aren’t sure what their insurance actually covers once they step outside their front door.
The good news is that most insurance policies do offer protection for theft that happens away from home. Here’s what you need to know to make sure your belongings are covered, no matter where you are.
Does insurance cover theft outside the home?
Yes, insurance can cover theft that happens outside of your home, thanks to contents insurance (also known as personal belongings coverage). This coverage is designed to protect your stuff, including your phone, laptop, clothes, and other personal items, and is automatically included when you buy home, tenant, and condo insurance.
The important thing is that this coverage usually isn’t limited to your home. It often protects your belongings wherever you take them. For example, if your phone gets stolen at the gym or your laptop goes missing from your hotel room.
As long as the stolen items’ value exceeds your deductible (the amount you pay when filing a claim), your insurance may be able to help cover the loss, up to your policy’s limits. You’ll find the details about this in the property damage and theft section of your policy.
Bear in mind that theft occurring outside your home often comes with specific terms, conditions, and limits that may differ from those for theft inside your home. That’s why it’s always a good idea to review your policy so you understand exactly what’s covered and what’s not.
Where theft outside the home can happen
Theft outside the home can happen when you least expect it, in everyday places. Here are a few common spots where theft can happen:
- From your car (even your driveway)
- At a hotel or Airbnb while travelling
- From a locker at the gym or a public pool
- At an airport (ex. stolen baggage or carry-on items)
- At a restaurant or café
- From your workplace
- From your child’s backpack at school
- From your front yard or backyard
- On public transit
- At an event or concert
- From a friend’s house
Types of belongings typically stolen outside the home
When theft happens outside the home, it’s usually personal items you’re carrying with you, or that you’ve left in places like your car, locker, or luggage. Some of the items that are most likely to be stolen when you’re out and about include:
- Cellphones
- Laptops and tablets
- Jewellery and watches
- Clothing and shoes
- Bicycles
- Suitcases and travel bags
- Camera equipment
- Sports gear (ex. hockey skates, golf clubs, etc.)
- Musical instruments (ex. guitar, keyboard, etc.)
- Trade tools you personally own (ex. power tools, toolkits, etc.)
Limits and exclusions to consider
There are a few limitations and exclusions to keep in mind when it comes to theft outside the home, especially if high-value items are involved.
Off-premises theft is usually capped at a percentage of your total contents limit. For example, if your policy includes $50,000 in personal belongings coverage, theft outside the home may only be covered up to 10%, or $5,000.
On top of that, sub-limits often apply to high-value items like jewelry, electronics, bikes, and sports gear. If these are worth more than your policy allows, consider purchasing additional insurance for extra protection.
You’ll also need to pay your deductible before getting reimbursed. However, if your deductible is $500 and your stolen item is worth $300, you likely wouldn’t file a claim and would simply cover the $300 yourself without involving insurance.
And finally, insurers expect you to take reasonable precautions. For example, if items are stolen from a car without functioning locks or an unlocked hotel room, it will likely affect the outcome of your claim.
5 questions to ask before you file a claim for theft outside the home
Before filing a claim for something stolen outside your home, ask yourself the following questions:
- Can I afford to replace it myself? If the item was inexpensive or easy to replace, it might not be worth filing a claim.
- What’s my deductible? If the cost to replace the item is less than your deductible, you won’t involve insurance.
- How much coverage do I have for theft outside the home? Check your insurance documents to see if your policy includes a sub-limit specifically for theft outside the home.
- Could a claim cause my premium to go up next year? Am I prepared for that? Claims can sometimes lead to higher premiums when it’s time to renew your policy, so it’s important to weigh the potential impact before filing.
- Do I have documentation to support my claim? Receipts, photos, and other documentation of the item make a big difference in getting your claim approved.
Next steps
Whether you’re travelling, heading to work, or going to the gym, having coverage for your personal belongings gives you peace of mind and covers your losses if something ever goes missing.
With YouSet, you can compare home, tenant, and condo insurance policies that include coverage for theft outside the home. Compare policies and get covered in just 4 minutes with no paperwork and no hassle.
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