You woke up early on Cyber Monday to snag that amazing deal on the laptop you’ve wanted for months. The computer is arriving today while you’re at work, and you let out a fist pump when you get the notification that your package has been delivered. Yet when you get home, your package is gone, vanished into the evening, tucked under the arm of a “porch pirate.”
“There’s a literal Grinch that tears through neighborhoods, stealing away Christmas presents and essentials from grandparents and children alike – right off their own front porch when a package arrives,” Gottheimer said in a statement. “We can’t let the holidays be snatched away from us in broad daylight by a bunch of porch pirates.”
Though the outlook for package theft is somewhat bleak, there’s a chance of a redemptive arc through an affordable protection plan: renters insurance.
The average renters insurance policy offers coverage for stolen packages, but only 20 percent of renters actually have it, according to Geico estimates. If you already have a policy or are planning to buy one, it helps to ask a couple of questions before you file a porch piracy claim.
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Is the value of the package more or less than your deductible?
Renters policies have deductibles that range anywhere from $250 to more than $2,000, according to Progressive.
Your deductible acts as an out-of-pocket cost you pay to file a claim for a covered incident like porch piracy. In some cases, you pay it up front, and in other cases, your insurer subtracts your deductible from your claim payment.
The important thing to understand is that filing a renters insurance claim – which can raise your premiums – is typically only worth it if the value of the item that was stolen from your doorstep is more than what your deductible is.
For example, it may not make sense to file a claim for a $350 vacuum cleaner stolen from your stoop, if your deductible is $500. You’d end up paying more than what the original item was worth.
What are your policy’s coverage limits and restrictions?
Every insurance policy has a set of rules about what is and isn’t covered, as well as how much coverage you can get. These nuances can change from insurer to insurer and can fluctuate based on the type of security at your home or apartment; if you’re living alone or with roommates; if you have pets; and if you’ll keep valuable items like jewelry or bikes in your home.
Generally speaking, the main limitation you need to consider when getting protection from porch pirates is personal property coverage. This is the feature of your policy that will reimburse you if you lose personal property to theft, fire, or other covered scenarios.
A renters policy may include a $50,000 personal property limit – meaning that the most your policy will pay for a covered incident is $50,000. In most cases, your insurer will allow you to adjust your coverage amount during the application process, with amounts that could range from $10,000 to $100,000.
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Can you afford to wait at least a month to get your claim payout?
The holidays can stretch finances thin. Having a package stolen from your doorstep only amplifies the financial burden. However, renters policy claims can take a month or longer, according to insurance marketplace Goodcover, which means any money you spent on the contents of the stolen package likely won’t be repaid for weeks.
So if you need the money you spent on your package, renters insurance may not be a good fit.
Renters insurance alternatives
While renters insurance is the most straightforward way to resolve a porch piracy event, there are other methods of being compensated for what was stolen.
Retailer return process
Some retailers may allow you to get a refund if stoop stealers swiped your delivery. For example, Amazon offers its customers the option to request a refund specifically for packages being stolen from their porch.
Porch piracy insurance
A handful of companies offer insurance coverage specific to porch piracy. PorchPals is one such company. For $10 a month, PorchPals will cover pirated purchases made by a linked card. Like renters insurance policies, it’s important to know coverage limitations. In this case, PorchPals limits you to up to three claims a year, and reimbursements max out at $2,000 per package.
Credit card insurance
Some credit cards offer purchase protection for items you buy with your credit card. For example, a card may offer insurance for purchases against a variety of hazards, including theft. However, certain items such as living things, antiques, collectibles, and motorized vehicles aren’t covered.
Because purchase protection has important limitations and can change from card to card, it’s important to look at your card’s terms and conditions or contact the card issuer to clarify if and what types of purchases are covered.