Your home is a place where you store many things, including the money to buy said things. If you have a drawer filled with cash you are in luck, but you may be at risk of the cash being stolen. Luckily, theft is a commonly covered peril in homeowners insurance policies. This means that you will likely be reimbursed by your homeowners policy if you have had cash stolen, up to a certain point. To determine how much money you may be eligible for receiving from insurance consider:
- How much money was stolen?
- Where was the money stolen from?
- How can I get more coverage for the cash I keep in my home?
How Much Money Was Stolen?
In almost all cases, homeowners insurance will cover you if you have had cash stolen, but insurance normally only gives between $200-$300 dollars. While this amount likely isn’t going to replace all of your stolen money, it is nice to get some of it back. Policies and their protections vary, but most homeowners insurance can compensate up to $200-$300 dollars for stolen cash, even if the money was stolen outside of your property.
The same policy goes for money lost in a fire or other accident. Insurance was not designed to cover physical cash, because in the eyes of insurance companies that is what a bank is for. If cash is lost in a fire or other accident, you may be able to get some of it back, but compensation will typically not exceed $200-$300 dollars.
Where Was the Money Stolen?
In some homeowners policies, homeowners may be eligible to get up to $2,000 in coverage if the cash was stolen from the home. To get this high amount, homeowners need to have evidence of the theft and that there was money in the home before it. Evidence of theft can be hard to come by, which is why insurance doesn’t like to pay over $200 for stolen cash.
How Can I Get More Coverage for Cash I Keep in My Home?
Like almost all things with insurance, if you want to have more protection and coverage, you just need to pay more. In the event that you do not like keeping your money in a bank, you can receive more cash protection from your insurance by paying a higher insurance rate. If you are looking for that $2,000 in cash protection, paying a higher rate is the way to go.
- Ways to protect your cash: If you do insist on keeping cash in your home, there are several ways that can help to protect your cash.
- Have a home security system: Having a home security system is beneficial for a number of reasons. It better protects your home, discourages thieves, alerts first responders to fires, water, and other dangers, and can lower your homeowners insurance premium. Most crimes are done out of convenience and bypassing a security system isn’t convenient for a criminal. It is estimated that homes without security systems are three times as likely to be broken into. Having a home security system will also give you a piece of mind in knowing that your home is better protected and armed.
- Have a fireproof safe: A fireproof safe is one of the best investments a home can have. Not only does it protect your personal documents (social security card, birth certificate, marriage certificate, etc.) it can also protect small expensive items and your cash. Safes lock and when not in use should be locked and secure (this is what makes your safe, safe). Many safes are both fireproof and water resistant. This can provide extra protection to your cash against thieves, fires, floods, and other damaging elements.
- Place your cash in different locations around your home: The best place for your cash to be safe in your home is in a safe. While safes are a great investment, they can still be broken into or stolen altogether. If you have large amounts of money, it may be helpful to put your cash in several locations. By doing this you are less likely to have all of your money stolen or lost at a time.