Does home insurance cover theft outside the home?
6 minute read Published on Aug 13, 2025 by BrokerLink Communications
If your personal belongings are stolen outside your home, you might wonder — will your home insurance actually cover it? Whether it’s your first time buying homeowners insurance or you’re reviewing your current policy, understanding what’s protected (and what’s not) can save you from unexpected expenses. In this guide, we’ll walk you through how home insurance handles theft outside the home, what limits might apply, and how to make sure your valuables stay protected, wherever you are.
What is home insurance coverage?
Home insurance, also known as homeowners insurance, is a type of coverage tailored to protect the interests and finances of Canadian homeowners from various risks. While basic policies may vary between different insurance companies, you'll typically find the following within your plan:
Personal property coverage
Personal property coverage is a policy that protects your personal belongings from damage or theft. Should your personal belongings be damaged by a peril listed in your insurance policy or stolen from your house, your insurer will cover the cost of repairs or replacement costs up to your policy limits.
When purchasing coverage for your personal belongings, your insurance company will ask you to provide an appraisal of your personal property to ensure they can provide coverage that is sufficient in the event a covered loss occurs.
Note that if you have high-value items, a standard policy may not be enough. In this scenario, you'll need to purchase additional insurance, commonly known as high-value home insurance, to ensure your high-value items are covered.
Personal liability insurance
Liability insurance is also commonly included in a standard homeowners insurance policy. In the event that someone is injured on your property or property damage is caused to a third party, your liability coverage will cover the cost of repairs, replacements, medical bills, legal fees, and other associated expenses, should a lawsuit be filed against you for damages.
Dwellings home insurance policy
Dwellings home insurance is intended to provide coverage to the physical structure of your home from different perils that may damage your house. This includes:
- Fire
- Lightning
- Smoke
- Theft
- Wind
- Car/aircraft impact
- Explosion
- Falling objects
- Other weather damage specified in your plan
Note, to ensure you understand what is and isn't covered, review your home insurance policy for more information.
Additional living expenses insurance
If your home is damaged to the extent that it is no longer safe to live in, additional living expenses will cover the additional cost of accommodations, food, and other expenses until you are able to move back into your home.
Optional home insurance coverage
Beyond a standard homeowners insurance policy, homeowners have the option to purchase additional coverage to supplement their plan:
Water damage coverage
Overland water damage coverage is an optional home insurance policy that will cover the cost of repairs or replacements if your home is damaged by overland flooding in your area.
Sewer backup coverage
Sewer backup insurance coverage protects you in the event your home is flooded by sewage backup. This policy is especially important if you live in a home with old plumbing. Note, you can prevent flooding by installing sump pumps and backwater valves, and there may be discounts available from your insurance company for installing these devices.
What does home insurance not cover?
While the coverage provided by homeowners coverage is often sufficient, there are perils that are not generally covered. For example, your insurance will not cover appliances if they break down due to normal wear and tear. However, the replacement cost of your appliances may be covered if they are damaged by a peril listed in your policy.
Additionally, your insurance will not cover mould or mildew growth that may grow throughout your home or damage your personal items. All types of pest control are the homeowner's responsibility. Remember to read your policy to fully understand what your inclusions and exclusions are.
Will homeowners insurance cover theft of belongings when you’re not at home?
While your insurer will cover stolen items if a break-in occurs at your property, there are some exclusions you need to be aware of. For example, expensive items stolen, like jewellery, will not be enough to be replaced with the standard coverage provided by home insurance. You'll need to purchase additional coverage, like high-value insurance, to ensure you have adequate protection.
Additionally, car theft is also not included in home insurance. If your vehicle and personal property stored in your car are stolen outside your home, you will need to file a claim with your insurer under your car insurance policy.
What is an actual cash value?
Actual cash value is a method used to calculate the replacement costs of stolen or damaged personal property under homeowners insurance. To determine how much compensation you will receive for your stolen items, your insurer calculates the current market value of your stolen items, minus the depreciated value of said items.
What is a replacement cost value?
Replacement cost value will replace your stolen possessions by giving you enough money to replace the items stolen based on the current market value of those items. For example, if you just bought a new computer and your stolen laptop is worth $2000, they'll give you roughly the same amount to ensure you can purchase the same or a similar model of laptop during a break-in claim.
Is it possible to invalidate your homeowners insurance policy?
Yes, you can invalidate home insurance. Whether it be appraising stolen items as more than they are actually worth, lying about the circumstances surrounding your claim, adding items to your home inventory you don't own, or failing to maintain your property, not advising your insurer if you do improvements to your home, numerous scenarios can lead to a claim denial.
How can I avoid insurance claims?
To prevent home insurance claims, it's essential that you take proper care of your home throughout the year. For example, common home insurance winter claims include frozen pipes, leaking roofs, and other types of damage that are difficult to deal with.
Preventative measures that can prevent filing numerous claims a year include installing a sump pump and backwater valve, updating your coverage yearly, switching to a tankless water heater, having HVAC and other appliances professionally serviced each year, and more.
How can I make a home theft claim?
Filing a claim for theft is similar to how you would file a personal insurance claim. Here's what you need to do:
- Contact the police and get a police report.
- Document photos and videos of any damage caused or missing belongings.
- Contact your insurance provider and inform them of the incident.
- Provide your adjuster with original receipts, if possible, and other required documentation they ask for.
- Pay your insurance deductible.
- Get compensated for the theft of your stolen belongings.
What structures are covered by homeowners insurance?
Structures covered by home insurance include any:
- Garage
- Shed
- Guest house(s)
- Detached patio or dining area
- Gazebo
- Pool cabana
- Fences
- Mailboxes
- Backyard or walkways
Remember that whether your insurance will provide coverage for different types of secondary structures will depend on the specifics of your policy. Make sure to clarify with your insurer before signing your agreement to guarantee you have the right coverage for all structures on your property.
How much does home insurance cost?
The average home insurance cost in Canada ranges from $1000 to $2000 a year. Keep in mind that this cost will vary significantly between properties and is based on several different factors such as:
- The property value of your home.
- Where your home is located.
- The current condition of your home.
- The size of your home.
- The amount of coverage you choose.
- And more.
Before purchasing insurance, we recommend getting quotes from different providers, as it can help you find the best deal available without having to sacrifice your level of protection. Additionally, consider bundling home and auto policies to save on your premiums.
Contact BrokerLink for affordable homeowners insurance today
At BrokerLink, we help Canadians find affordable homeowners insurance that gives them peace of mind knowing their property is safe through tailored policies, unbiased home insurance advice like holiday protection tips, and more. Beyond standard homeowners insurance, our brokers can help you with:
To work with a broker from BrokerLink, come visit us at one of our many locations across the country. If we're not in your neighbourhood, you can contact us over the phone or via email. For now, get a free home insurance quote using our online quote tool for a competitive quote ready in minutes!