Theft

What you'll learn

Why theft claims are harder than they look. Sub-limits + valuation. Police report requirement. Inventory reconstruction. The carrier-investigation phase that often delays.

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9.6.1 Why theft claims are different

Factor	Why it complicates
Items are gone — no physical evidence	Valuation entirely from records / memory
Sub-limits hit hard	Jewelry $1,500, firearms $2,500
Carrier suspects fraud	Theft has higher fraud rate; SIU often involved
Police report requirement	Procedural condition; can't claim w/o one
Inventory reconstruction	Most homeowners didn't pre-document
Recovered items	Some items recovered later — carrier salvage rights

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9.6.2 The first 24 hours

1. File a police report — required by virtually all FL homeowner policies. Can't claim without it.
2. Photograph the scene — broken doors, windows, evidence of forced entry. Don't disturb.
3. List what's missing — initial pass; refine later.
4. Notify the carrier in writing — within 24-48 hours.
5. Don't replace items yet — carrier may want to inspect / verify before paying.

The police report is the foundation. Without it, the claim doesn't move.

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9.6.3 Sub-limits — the bite

Theft has the most aggressive sub-limits in homeowner policies.

Item category	Typical sub-limit (theft)
Jewelry, watches, furs	$1,500–$5,000
Firearms	$2,500
Silverware, goldware	$2,500
Money, cash, bullion	$200–$500
Trading cards, collectibles	$1,500
Securities, deeds	$1,500

The damage

Stolen jewelry valued at $25K → policy pays $1,500 unless scheduled on a Scheduled Personal Property endorsement.

The fix

For valuables: schedule them. Already covered in Module 5.4.

If items weren't scheduled at time of theft → sub-limit applies. Limited recourse.

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9.6.4 Inventory reconstruction

For each stolen item, build documentation:

Document	Why
Original receipt	Best valuation evidence
Credit card statement	Shows purchase amount + date
Photos of items in your home	Proves possession
Manufacturer warranty	Shows model + age
Online order history (Amazon, etc.)	Receipt + date
Appraisal	For high-value items (jewelry, art)
Comparable pricing	If you can't find original receipt
Witness statements	Family members confirming possession

For each: brand, model, age, condition, value. Same fields as inventory in 5.4.

The carrier's pushback

Carrier will:

• Cross-check inventory against social media
• Compare to prior insurance applications
• Look for discrepancies w/ income / lifestyle
• Question high-value items not previously scheduled

Be precise. Don't inflate. Document everything.

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9.6.5 The carrier investigation phase

Theft claims trigger heightened investigation:

Step	What
SIU referral	Special Investigation Unit reviews for fraud
EUO request	Often demanded for theft claims (Module 8.5)
Document requests	Tax returns, bank statements, prior claim history
Recorded statement	Carrier's adjuster (Module 3.4)
Surveillance	Sometimes, in suspected fraud cases
Police follow-up	Carrier may request police report + investigation status

This phase often takes 30-90 days and can feel intrusive. It's standard. Cooperate within reasonable limits — same boundaries as Module 7.5.

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9.6.6 Common theft denial reasons

"No evidence of forced entry."

Carrier suspects insider job (you, family, friends). Counter:

• Your own absence (alibi, witness statements)
• Spare key access by trusted parties (housekeeper, contractor)
• Method of entry possibly through unlocked door/window
• Police investigation findings

"Items not on application / inventory."

If you have valuables not previously declared (e.g., never told carrier about $30K of jewelry), carrier may argue you didn't insure them properly. Counter: most policies cover up to sub-limits without scheduling; only loss above sub-limits is at issue.

"Inflated valuation."

Counter: receipts, appraisals, comparable pricing, expert valuations.

"Vacancy clause applies."

If property had been vacant per the policy definition (often 60+ days). Counter: vacancy definition specifics, occupancy patterns, etc.

"Recovered items reduce loss."

Some items may be recovered. Carrier credits recovery against payout. Standard. Note: carrier may have salvage rights to recovered items if they paid — don't sell them without checking.

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9.6.7 The recovery / salvage rights issue

When carrier pays for stolen items + the items are later recovered:

• Carrier owns the recovered items if they paid full claim (subrogation/salvage rights)
• You can sometimes buy them back from the carrier
• Carrier sometimes lets you keep recovered items if loss was small

Document everything. Don't assume you keep recovered items if carrier paid.

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9.6.8 Theft + ALE

If burglary made the home uninhabitable (e.g., destroyed door, broken windows requiring board-up + repair), Coverage D / ALE may apply.

Limited typically — most theft doesn't make home uninhabitable. But some do (fire-set-by-thieves, vandalism during burglary, etc.).

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9.6.9 Vandalism in conjunction with theft

Often theft includes vandalism — broken doors, ransacked rooms, damaged property to access valuables.

Vandalism is typically covered as a separate peril. Document separately from the theft itself:

• Photos of damaged property
• Scope of vandalism repairs
• Distinct from theft (which is "items gone")

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9.6.10 Action steps

1. Day of theft: police report + photos + carrier notice in writing.
2. Within 7 days: complete initial inventory + value reconstruction.
3. Pull supporting documents — receipts, photos, statements, appraisals.
4. Cooperate w/ carrier investigation — but within reasonable limits.
5. For EUO: never alone (Module 8.5).
6. Don't replace stolen items until carrier coverage decision.
7. Track recovered items — carrier may have salvage rights.

Next: 9.7 Fire.

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Educational. Not legal advice. Theft claim procedures + sub-limits vary by policy. Verify against your specific policy.