Broad Theft Coverage Endorsement

What is Broad Theft Coverage Endorsement?

Broad theft coverage endorsement, also known as broad form personal theft insurance, is a type of insurance coverage for your property in case of theft or loss. Whether the loss was due to theft or vandalism, coverage for all personal property is under the same policy. Broad coverage goes beyond just the essentials. 

When a homeowners insurance policy coverage does not include personal property, when renting, a need for additional protection may arise. Broad theft can include specific perils. These consist of theft and burglary damage for the covered property, on and off premises. However, it is best to review the declarations page of your policy to make sure what specifically is covered by your insurance provider.

Most insurance providers will pay for theft, attempted theft, and times when your items go missing from their usual places and there is a good chance that theft took place. It is also important to note that burglary damage is usually covered under most insurance policies, however, some will not cover it if the dwelling has remained vacant for an extended period.   

On-premises vs Off-premises

Items that are usually insured while on the premises, such as TV, are covered under on-premises coverage.  Off-premises coverage is applicable to possessions that are commonly insured while out of the home, such as luggage that is stolen or items taken from a hotel room.

Personal property that is typically covered includes items that are usually found while occupying a residence. The insured or a domestic employee must be the owner of the property.  An additional premium is usually required once the coverage exceeds the limit. The following items are among the personal property covered under on-premises coverage:

1. Anything located on the premises, or
2. Items kept in a bank, trust, or safety deposit box, a public warehouse, an occupied home (such as a condo), a rented apartment, or occupied by an insured, but are instead placed there for safekeeping or
3. Belongings to an additional new permanent residence
   

There are several items that most insurance policies do not cover.  It is best to check with your insurance company and find out what requires additional coverage.

Items that are not typically included are: 

Land or water

Plants, trees, shrubs, and lawns

Animals, birds, fish, or insects

Campers, watercraft, trailers, and motors.

Motorized vehicles, including their parts, equipment, and accessories

Aircraft, including their parts and equipment

Electronic devices, accessories, operating from the electrical system of a motorized vehicle, farm equipment, or watercraft. 

How Broad Theft Coverage Protects Landlords and Tenants

As a landlord, it is best to have a broad theft coverage endorsement, rather than a policy that is more specific. There are too many opportunities for problems to arise when you are renting, and it is almost impossible to predict every possible scenario. While a broad theft coverage endorsement can be more expensive than other forms of coverage, it will save you a lot of money in the long run if something does happen. This also protects your tenant if something goes missing and it was beyond their control. 

Conclusion

A broad theft coverage endorsement is a great tool to add to your already extensive list of insurance policies. It is yet another layer of protection for both you and your tenant in case of theft or burglary damage to your property.