Will My Insurance Cover Losses from a Street Robbery?

Street robbery can be a terrifying experience. If you find yourself in this situation, it's natural to wonder if your insurance will help cover your losses. The answer depends on several factors including the type of insurance you have, the value of what you lost, and the specific details of your policy. In this article, we'll explore how different types of insurance can handle claims for personal property lost during a street robbery.

Introduction

Street robberies can happen anywhere, at any time. In certain regions or situations, insurance protection may vary. For instance, a mugging incident in Miami during the 1980s claim ($180) was covered by a homeowners policy. Conversely, India does not have protection against individual street robberies through typical personal or general insurance policies.

For businesses, transit insurance can protect money during transport, but this is not applicable to individuals. In general, personal property loss from a street robbery can be covered under certain policies, but it's important to understand the details of your insurance coverage.

Understanding the Coverage

Here, we'll explore what typically happens after a street robbery:

Personal Property Coverage

Assuming a mugger took a wallet and a Rolex watch, both items are generally covered under your personal property coverage. A wallet will likely be covered, although the cash inside may have a limit (typically around $200). The value of the Rolex will depend on whether it was scheduled for additional coverage when you bought the policy. Jewelry is typically limited, but with an appraisal, you can increase the coverage for additional premiums. The benefit claim will be reduced by your deductible.

Homeowner/Condo/Tenant Insurance

Homeowner, condo owner, or tenant package insurance typically covers items taken outside the home, subject to a deductible and specified limits. Cash has a very low limit and cannot be increased, but jewelry can be covered up to a certain value with an appraisal. You must report the crime to the police and submit the police report to the claims department of your insurer.

Belongings “On Person” Coverage

Many homeowners and renters insurance policies offer coverage for personal property “on person” while away from the home, but there are specific limits for cash, jewelry, and certain tech items. A deductible applies, and you may be reimbursed for the depreciated value or replacement cost value of your stolen items. It's crucial to read your policy and become familiar with relevant sections, using a highlighter and pencil to mark important details. Your insurance agent can provide further clarification.

Conclusion

Whether or not your insurance covers your losses from a street robbery depends on the type of policy you have, the specific wording of the policy, and the value of the items stolen. Understanding your coverage and preparing appropriate documentation (like a police report) is crucial in making a successful claim. If you're uncertain about your coverage, consulting with your insurance agent is the best way to get a clear understanding. Stay informed and be prepared to act quickly when the worst happens.