My auto keys are stolen from my neighbour's house?

Question

While leaving for vacation, I had left my car and home keys in my neighbor's house. Unfortunately, there was a broke-in in my neighbor's house, they had lost their jewelery, important documents along with my car and auto keys.

I had replaced my car lock sets, reprogrammed my car keys...etc, and the whole expense came to $800 bucks.

Here is the situation with my insurance company- I have both Auto with deductible $100 and Renters insurance with $1000 deductible with Allstate. And, my neighbor has Allstate renters insurance too.

Allstate is not ready to open a claim for me, suggesting my neighbor should open a liability claim.

Is this the best way to proceed,also mentioned they would only cover the cost of keys ( few dollars probably), doesn't cover replacing the lock sets. I had to replace the lock sets as there is highly likely hood that burglar come back to rob the car.

Is it reasonable for the insurance company to just replace keys only?

Also, surprised why this doesn't cover under my auto policy?

Any suggestions, hints are helpful. Thank you all guys for your time!!

Answer 1

The insurance company only owes to replace the stolen key.

The insurance policy covers damage that is direct and accidental. The direct loss - is the theft of the keys. Since the thief did not damage the car locks -changing those is not covered. That is not a direct loss.

Changing the locks is a preventative maintenance item.

Had you not changed the locks and the car was stolen - then the theft of the car would have been covered under your compressive coverage.

Your neighbors homeowners policy may replace the key. The home owners policy provides limited coverage for property of others that is in your care-custody-control. The homeowners will not pay to replace the locks in the car either.  

Answer 2

Interesting scenario.  The neighbor would not be liable.  Your own homeowners insurance should pay to have your House locks changed and maybe your auto locks but I'm not sure about the auto expenses.  If your Homeowners wouldn't pay for the auto expense then your auto insurance should.   Whoever pays should pay for having the locks changed, not for just the keys

Answer 3

Your insurer is correct -- unless you purchased an additional policy to replace the locks you are on the hook for this. There is absolutely no evidence that your car would have been stolen had you not changed the locks so no insurance company in their right mind would pay you for that.