Is Home Insurance Really Worth It After a Theft? The Great Debate

Should You Rely on Homeowners Insurance After a Theft? - A home break-in is more than just a financial loss—it’s a violation of your safety and comfort. Many homeowners wonder: Is homeowners insurance really worth it after a theft? This guide answers that question with real data, expert insights, and practical solutions.

What Does Homeowners Insurance Cover in a Theft?

Most standard homeowners insurance policies cover theft under personal property coverage. This includes:

  • Stolen items (up to your policy limits)

  • Damage from the break-in (e.g., broken locks or windows)

  • Possible coverage for items stolen outside the home (e.g., from a car or hotel)

Tip: Coverage varies. Review your policy or speak with your insurance agent to confirm limits, deductibles, and exclusions.


The Reality of Theft Claims: Data and Insights

While home insurance can be a lifesaver after a theft, the claims process and coverage can vary significantly. Here's what the data from the insurance industry tells us:

Frequency of Theft Claims: According to the Insurance Information Institute (III), property damage, including theft, accounted for 97.8% of homeowners insurance claims in 2022. This indicates that theft is a common claim event for homeowners.

Homeowners Insurance Losses, 2018-2022 (1)

Year Claim frequency (2) Claim severity (3) Year Claim frequency (2) Claim severity (3)
2018 6.31 $14,579 2021 5.39 $16,801
2019 5.39 $14,090 2022 5.45 $18,311
2020 6.45 $15,053

(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium policies. Excludes Alaska, Texas and Puerto Rico.
(2) Claims per 100 house-years (policies). One house-year represents policy coverage on a dwelling for 12 months.
(3) Average amount paid per claim; based on accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Weighted average, 2018-2022. Source: ISO®, a Verisk Analytics® business.


Average Claim Payout for Theft: Between 2017 and 2021, the average property damage claim payout was $15,091, with theft likely accounting for a significant portion of this amount. (III)

Underinsurance Problem: Studies suggest that approximately 60% of homes are undervalued for insurance policies, meaning many homeowners may not have enough coverage to fully replace their belongings in the event of a major theft. (webfx.com)

Claim Approval Rates: The approval rate for theft claims varies depending on several factors, including the evidence provided and the specifics of the policy. However, some insurance companies report that a significant percentage of claims are denied due to insufficient documentation or policy exclusions.

Importance of Documentation: According to a 2023 Munich Re Consumer Survey, only 47% of homeowners have prepared a home inventory, which is crucial for documenting losses and ensuring a smoother claims process.

It's important to note that these are just general trends and averages. The specifics of your policy, the value of your stolen items, and the circumstances of the theft will all impact your individual claim experience.


Supplement Your Coverage with Kangaroo’s Protection Plans

While homeowner's insurance is essential, it's important to consider additional protection options to ensure your peace of mind. Kangaroo's unique protection plans offer valuable supplements to your existing coverage:

Kangaroo Cam Protect Plan: This plan provides coverage for theft of delivered packages captured by your Kangaroo camera, with an average claim payout of $200-$300.

Kangaroo Complete Plan: This comprehensive plan expands coverage beyond package theft to include theft or damage to your Kangaroo devices themselves, as well as accidental damage to your home caused by break-ins.

With a 21% denial rate on Kangaroo claims due to factors like incorrect claim type, lack of response, or missing documentation, these plans can offer additional peace of mind and financial protection.


The Voices of Experience: Kangaroo Customers Share Their Stories

While statistics paint a broad picture, real-life stories offer valuable insights. Here's what Kangaroo customers who've filed theft claims have to say:

  • "Very smooth process." - Rodriguez, C.

  • "It was a very simple process, and you all handled it well." - Partida, C.

  • "I felt taken care of and the request for information were clear." - Pease, S.

  • "Everything was a breeze. Thank you for making it easy!" - Griffin, N.  

These testimonials highlight the positive experiences many homeowners have with their Kangaroo protection plans, particularly when the claims process is handled smoothly and efficiently. Kangaroo ensures that customers have a safety net in case of unexpected events.


The Big Question: Is Homeowners Insurance Worth It After Theft?

✅ Yes—when you’re properly covered.

Pros:

  • Financial Protection: In the unfortunate event of a theft, home insurance can help you replace stolen items and repair damage, saving you from significant financial loss.

  • Peace of Mind: Knowing you have coverage can provide peace of mind and help you feel more secure in your home.

  • Additional Living Expenses (ALE): Some policies cover additional living expenses if your home is temporarily uninhabitable due to the theft.

Cons:

  • Premiums and Deductibles: Home insurance comes with regular premiums, and you'll need to pay a deductible when filing a claim.

  • Claim Denials: Not all claims are approved, so there's a risk of not receiving compensation for your losses.

  • Potential Premium Increases: While Kangaroo doesn't raise premiums after theft claims, some insurers might.


How to Maximize the Value of Your Home Insurance After a Theft

Despite the potential downsides, the consensus among experts and experienced homeowners is clear: home insurance is absolutely worth it after a theft. The financial protection it offers far outweighs the cost of premiums, especially when you consider the potentially devastating financial impact of replacing all your belongings out of pocket.

  • Review Your Policy: Understand your coverage limits, deductibles, and exclusions.

  • Create a Home Inventory: Document your belongings with photos and receipts to simplify the claims process.

  • Consider Additional Coverage: For high-value items, consider adding a scheduled personal property endorsement or supplementing with Kangaroo's Cam Protect or Complete plans for extra protection.

  • Secure Your Home: Invest in security measures like Kangaroo's DIY home security system, which can help deter theft and potentially lower your insurance premiums.

By taking these steps, you can ensure that your home insurance policy, potentially enhanced by Kangaroo's protection plans, provides the comprehensive coverage you need, giving you peace of mind in the face of unexpected events like theft.

Related Content:
How to Get an Insurance Discount for Your Security System
Understanding the Basics: How Insurance Claims Work
Maximize Your Home Insurance Discount with Home Security Claims


 Frequently Asked Questions (FAQ)

  • Yes. Most policies reimburse you for stolen personal property up to the policy limits. Proof of ownership is often required.

    • Gradual damage

    • Intentional loss

    • Items exceeding policy limits without a rider

  • Yes, to a certain extent. Items stolen from your vehicle or hotel room may be covered.

  • Many insurers offer discounts for:

    • Monitored security systems

    • Smoke and leak detectors

    • Bundling with auto insurance

Final Verdict: Home Insurance + Smart Security = Maximum Protection

In 2025, theft remains a serious concern—but the right insurance, paired with proactive security, makes all the difference. Homeowners insurance is worth it when backed by preparation, documentation, and smart tools like Kangaroo.

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