Theft Coverage Limits
Definition:
Restrictions on how much insurance will pay for stolen property.
Explanation:
Standard policies include low sub-limits for items like jewelry, electronics, and firearms. Higher-value items often need to be scheduled for full coverage.
Example:
If your policy has a $1,500 theft limit for jewelry and your $8,000 bracelet is stolen, you’ll only receive $1,500 unless you scheduled it separately.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.