Do insurance companies insure for "inside" theft or damages?

Question

For example, a wife insures her jewels. Her disgruntled husband steals the jewels and runs off with them. Would the insurance company cover such instances?

Answer 1

If a homeowner, it may be covered by the house policy, if a renter it would be covered by renter's insurance, assuming in both cases they had a policy at the time of the theft.

Answer 2

not covered in your case

Answer 3

Are they still married?  Are they both on the policy?  Gotta know these things first.  And where is the police report in all this chaos?  No insurance co is going to pay for "an inside job" by the other insured.

Answer 4

Well, for YOUR particular example, no.  But that's because the POLICYHOLDER can't claim against themself - and the named insured automatically includes spouse.  

So for a HOMEOWNERS policy, if one insured does something the other insured doesn't like, they can't file a claim, because, well, the insured did it!!  That's why a lot of insurance companies, and most ethical agents, won't write a homeowners policy on two people who aren't married - it's not in either one of their best interests.

But for BUSINESS insurance, yes, you can buy "employee theft" coverage.  Again, it doesn't cover the PRINCIPAL - the business owner, if the owner does the stealing.  AND, they have to be willing/able to press charges against the thief.  

See, with the homeowners, you can't press charges against the thief - because the thief is the owner.

Answer 5

Since you say "inside," I'm assuming that the husband and wife were married and living together up until the time of the "theft," and both named as insureds on the policy. (The answer might be different otherwise.)

NO! Your policy will have an exclusion in every section that says something like, "We will not pay for intentional acts of the insured."

Why not? Because insurance policies are for "sudden and accidental losses." This example is not accidental, and there is no loss because he still has the jewels (or the money, if he sold them). You can't steal from yourself!

Answer 6

Theft by the husband is not covered.

He is an "insured" under her policy.  As such, the jewelry is jointly owned property of the married couple. If the husband wants to take them and run off with them, then it's his right.  It's his property.

That's a situation to be handed by the divorce attorney the wife will hire ....not the insurance company.