Theft in Insurance

What Is Theft in Insurance?

In insurance terms, theft refers to the unlawful taking of property with the intent to permanently deprive the rightful owner of it. This can include acts like burglary (unlawful entry with intent to steal) and robbery (theft involving force or threat of force). For landlords, theft exposure can involve stolen appliances, copper piping, HVAC units, or even vandalism that occurs during the act.

Does Landlord Insurance Cover Theft?

Yes, but with limitations. Most landlord insurance policies cover theft if the stolen property belongs to the landlord and is located at the insured rental property. For example, if someone breaks in and steals your washer and dryer from a vacant unit, that may be covered under your policy’s personal property section.

However, tenant belongings are not covered by landlord insurance. Tenants must have their own renters insurance to be reimbursed for stolen personal items.

Additionally, theft-related claims may only be honored if:

• The unit is not vacant beyond the allowed window (typically 30–60 days)
• There are signs of forced entry
• The landlord has taken reasonable precautions (e.g., locking doors, securing entry points)
  

Some policies may also include vandalism and malicious mischief coverage, which often complements theft protection.

Does Liability Insurance Cover Theft?

No. Liability insurance does not cover losses to your own property—it only applies when you are legally responsible for someone else’s injury or damage. If a tenant or guest steals from you, liability coverage won’t help; that would fall under the property coverage portion of your landlord insurance policy.

To learn more about protecting your investment from these risks, visit our guide to landlord insurance.