Personal Insurance: When a Thief Strikes

There is a reality TV series on the Discover Channel called It Takes a Thief. I know insurance adjusters who would like to hug the producers of that series because it addresses the important security issues that homeowners face. The premise is that, on each show, homeowners agree to let a former professional burglar break into their residence and show them their security issues. He also shows the damage they can suffer when they do not take adequate security measures.

Given a little time to prepare and to lock up their houses, the homeowners depart. Via hidden camera, they watch from a remote location while the burglar works. Typically, they are blown away by what happens. For example, those who trust that a big dog will deter burglars can experience jaw-dropping reality when they see their German Shepherd or Doberman frolic beside the burglar while he tears their home apart.

The series victims are always grateful for the immaculate cleanup, the strong new locks, and the state of the art security system that they receive in return for their cooperation. Yet, ironically, when the series burglar returns, unannounced, a few weeks later, he sometimes walks right in through the very same unlocked door that got him access the first time around. Or he finds that the splendid new security system is shut off.

It is true that little deters a truly dedicated criminal. But certainly we should try our best to discourage them. In fact, everyone has a responsibility to do so. To that end:

1. Have proper locks on doors and windows, and use them.

2. Keep checkbooks and bank statements under lock and key. Certainly keep personal papers and valuables such as jewelry in a safe place. (At least a locking security file is good for banking information. A safety deposit box is best for personal documents such as passports and birth certificates. A small safe bolted to the floor is preferred if you have a lot of jewelry.)

3. If you have a home security system, a warning sign should be posted in a window or in front of your home, and the system should be active.

4. If you think owing a dog will deter a burglar, think again.

5. Make an inventory that lists everything in your home, including items such as clothing and medication. Be sure to include the cost of these items. Update your list at least twice a year. Store your list in a safe place, such as a safe deposit box. Also, give a copy to someone you know you can trust, such as a parent or guardian. (Beyond burglary, this list is vital in case of catastrophic events such as fire.)

In many cases, it is true that your homeowner or renter insurance policy will replace items or reimburse you for burglary damage, even though your carelessness contributes to the loss. In all candor, however, it puts an adjuster’s teeth on edge to pay a claim because the insured forgot to lock a door. More important, every unnecessary claim drives up insurance rates for us all. Undoubtedly, the best thing is to remember the old saw, “An ounce of prevention is worth a pound of cure.” That said…

You return home after a hard day at the office. Let’s assume you took all the precautions you could, but you find a window broken or a door jimmied. Inside, your house is in complete disarray. The intruder has yanked the contents out of your drawers, cabinets, and closets, dumping everything on the floor. Perhaps he even dumped the food out of your refrigerator, shredded your sofa, and overturned your mattress. It’s a terrible shock.

These people want just one thing: MONEY. Or anything that they can sell to get money. In particular, they want cash, credit cards, and banking information such as blank checks. With the current crush of identity theft, they also want personal ID such as drivers’ licenses and passports. But they will take anything that’s small enough to carry. They have to work fast. Get in, grab, and get out. This is one reason they make such a mess. If you think a burglar has the slightest respect for you, your feelings, or the sanctity of your home, forget it. If they did, they would not be burglars.

In criminal justice, however, carrying a weapon and, especially, causing injury means a much stiffer sentence. Therefore, most burglars will not be armed. Like the average animal, most will not attack unless they are cornered. If you ever catch a burglar in the act, control your impulse to clobber him. Instead, back off. Stay as far away as you can. If you can leave your house safely, do so. By all means, give him a clear escape route. If you play hero, grab a gun, and try to capture the crook, you are taking a risk that you do not need to take. Your money and valuables are simply things. Nothing that you own is worth risking injury, facing a prison term for unnecessary force, or, worse, losing your life.

As a rule, thanks to your homeowner insurance policy, your things can be replaced or their cash value will be covered. Here are some things you can do to help yourself and your adjuster:

1. Call the police. While you await their arrival, touch nothing. Your natural impulse will be to clean up, but don’t. Disturbing the scene could destroy evidence, so leave your home exactly as you find it. The investigating officers will let you know when you can restore order. While the police are on the scene, ask them how you can go about getting your case number and a copy of the police report.

2. After the police leave, take immediate steps to secure the premises. If you have broken windows and shattered doors, board them up tightly and call for repair. Get someone to replace them as soon as possible. Call a locksmith and have him change the locks on all exterior doors that were not damaged. (Burglars have been known to take spare keys and return at a later date.)

3. Call in your claim. Be sure to have your policy number ready. Also, have a pad and pen to jot down any information such as your claim number and the adjuster’s name. For the initial report, give a brief, concise statement about what happened. Hold details for your adjuster. Depending on your company, it can take as much as a business day for an adjuster to return your call. I know you will be upset and distraught, and it may seem like the return call takes a long time, but be patient.

4. While you wait, get out your home inventory. Use it to prepare a detailed list of everything that is missing or broken. Include all damage to your house: the shattered window, jimmied door, damaged carpets, etc. List the names, addresses and telephone numbers companies who came to do repairs. Or, if they gave you an estimate, attach it. If they required payment up front, attach your receipts. Be prepared to offer all this data to your adjuster. Be sure to keep copies of everything for yourself.

5. If the repairs cannot be made immediately, and the house will not be safe until they are completed, by all means leave. Stay with a relative or friend. If need be, go to a motel. Simply let the adjuster know how to locate you. If leaving incurs more expenses, save your receipts and submit them with your insurance claim. Ask the adjuster to reimburse you under the “loss of use” clause in your policy.

Theft:

You have a pile of Christmas presents in the trunk of your car. Some Grinch breaks the lock and steals your goodies. Or you left your new lawn mower on your back porch, and, in your absence, someone walked away with it. Or while you wait for a bus, someone makes off with your Rolex. This is theft. An interesting wrinkle with theft is that homeowners or renters coverage can extend also to your car or to other locations such as an airport or hotel room. Beyond that, the basic rules are similar to burglary.

1. Call the police.

2. File your claim.

3. Prepare so that you can provide your adjuster with as much information as possible.

A word of caution about theft. Your insurance policy tends to group some items under a certain category and to limit reimbursement for that category. For example, your policy may say your carrier will pay $1500 for stolen jewelry. But what If your diamond ring is worth $5000? If you own items that have a greater value than your policy states, by all means ask your agent for additional coverage. This is called “scheduling.” It can apply to any special item you wish to insure for full replacement value. Jewelry. Furs. Works of art. Antiques. In reality, it will not greatly increase your premiums, and it can save you major headaches if you have a loss.

Also check to see if your policy extends to lost or stolen credit cards. If it doesn’t, call your agent and ask if you can get such coverage. Many insurance companies do it as a matter of course, and some are now offering coverage for identify theft. If someone steals your wallet, it’s good to know you have protection.