Broad Form Personal Theft Insurance

Broad frorm personal theft insurance covers the theft or loss of personal assets. It can be placed on all personal property, and is on an all-risk basis meaning no matter whether the loss is from vandalism, theft or loss, the same coverage will apply. A limited form of broad form insurance is more commonly known as personal theft insurance.

There are limitations on the coverage of personal assets which are most often subject to theft such as jewelry, coins and securities, among others. Personal assets insurance is commonly included in homeowners and auto insurance, however, additional insurance may be purchased.

This type of coverage is standard on homeowners and renter policies. The limitations and exclusions built into standard policies, however, makes this coverage not very comprehensive and of little use if something really valuable is lost or stolen.

Consider this boilerplate from a standard homeowners policy that's in wide use:  We do not pay for: a. theft by an insured person; b. theft in or to a structure being built, or theft of materials and supplies for use in construction of the structure, until the structure is finished and occupied; c. loss of a precious or semiprecious stone from its setting; d. loss that results from the theft of a “credit card”; or e. theft from a part of the dwelling usually occupied solely by an insured person while it is rented to others.

There are money limits on all claims:  $200 on money, bank notes, bullion, gold other than goldware and gold-plated ware, silver other than silverware and silver-plated ware, platinum, coins, and numismatic property. b. Regardless of their storage medium, $1,000 on securities, bills, letters of credit, notes other than bank notes, tickets, accounts, deeds, evidence of debt, passports, manuscripts, stamps, and philatelic property. c. $1,500 on jewelry, watches, precious and semiprecious stones, gems, and furs. d. $2,500 on silverware, goldware, pewterware, and items plated with gold or silver. e. $2,000 on guns and items related to guns. f. “Business” property, up to the amounts shown below: 1) $2,500 while on the “insured premises”; 2) $250 while away from the “insured premises”. g. $1,000 on watercraft including their trailers, furnishings, equipment and motors. h. $1,000 on trailers not otherwise provided for.

The point here is if you have valuables you want covered by insurance, you'll need to purchase a rider. Riders can add up to 20% to your annual premiums, but you'll get full coverage of items such as jewelry, coins and artworks. Many people find it cheaper to skip the riders and lease a safety-deposit box instead for smaller items.