Package Theft, Holiday Decorations and Home Insurance

The holiday season brings more deliveries on the porch and more lights, inflatables and gifts around the house. Homeowners and renters insurance may help when packages are stolen or decorations cause damage, but the deductible and a few policy rules often decide whether a claim makes sense. Here is what to check before the busy shipping weeks.

Are stolen packages covered?

Theft of your personal property is usually part of the personal property coverage in a standard homeowners or renters policy, and that can include items stolen from your porch or doorstep. In practice, a few things usually matter more than the coverage itself:

• The deductible. Many deductibles are higher than the value of a typical package, so a claim may pay nothing or very little.
• Who owns the item. Until a package is delivered, it may still be the seller's or carrier's responsibility. Retailers and delivery services often replace or refund missing packages, and that is usually faster than an insurance claim.
• Claims history. Small claims can affect future pricing or eligibility with some insurers, so many people save insurance for larger losses.
• Payment card protection. Some credit cards offer purchase protection for theft within a set period. Check your card terms.

What to do when a package goes missing

1. Confirm delivery details such as the photo, time and location from the carrier, and check with neighbors.
2. Contact the seller and the carrier first and ask about a replacement or refund.
3. File a police report if the item was valuable. Insurers and card issuers may ask for one.
4. Save proof: order confirmation, receipt, delivery notice and any camera footage.
5. Call your insurer only if the loss is clearly above your deductible and other options did not work.

Ways to reduce porch theft

• Ship to a locker, pickup point or store when you will be away.
• Ask for signature on delivery for expensive items.
• Use delivery instructions to place packages out of sight.
• A video doorbell or camera may deter thieves and helps document a loss. Some insurers offer a discount for security devices, so ask.

Holiday decorations: damage and theft

Decorations are usually treated as personal property, so theft of outdoor lights or inflatables may be covered the same way as other belongings, subject to the deductible. Damage caused by decorations is a separate question:

• Fire. Fire from a tree, string lights or candles is generally a covered peril for the house and belongings, even if it was an accident. Taking reasonable care, such as watering a live tree and switching off lights at night, still matters for safety.
• Roof and gutter damage from installing lights may be treated as a covered accident or as wear and tear, depending on the policy and how it happened.
• Injuries to guests or helpers, such as a visitor tripping over a cord, may fall under the liability and medical payments parts of a homeowners policy.
• Damage to a neighbor's property, for example a decoration blown onto their car, may fall under your liability coverage.

Gifts in the house

Holiday gifts can add up quickly. Jewelry, watches, electronics and similar items may have special theft limits in a standard policy. If you are giving or receiving something valuable, ask about scheduling it on your policy or adding a rider. Keep receipts and photos in a safe place, such as cloud storage.

Quick policy checklist before the holidays

• Your deductible, and whether it is an amount you could pay easily.
• Personal property limits and any special limits for jewelry, electronics or collectibles.
• Replacement cost vs. actual cash value for belongings.
• Liability and medical payments limits, especially if you host guests.
• Discounts for cameras, alarms or smart devices.

Learn more about how homeowners insurance coverages fit together, what affects the price of home insurance, and frozen pipes and home insurance.

FAQ

Q: Does homeowners insurance cover stolen packages?
A: It may, because theft of personal property is often covered, but the deductible is usually higher than a single package. The seller or carrier is often the faster route to a refund.

Q: Does renters insurance cover porch theft?
A: Renters insurance usually covers theft of your belongings too, with the same deductible question.

Q: Is a Christmas tree fire covered by home insurance?
A: Fire is generally a covered peril in a standard homeowners policy, including accidental fires. Check your policy for details and limits.