Theft

Concept

In an insurance context, theft is the unlawful taking of another’s movable property from another person’s possession with the intent to unlawfully appropriate it, and is one of the central insured perils in household contents, buildings, and contents insurance.

Distinction from Related Perils

Simple theft must be distinguished from burglary, in which the perpetrator gains access to the policyholder’s premises by overcoming an obstacle (such as forcing a lock or entering through a window), and from robbery, in which the taking involves the use of force or threats against a person; most property insurance conditions differentiate between these variants with respect to the scope of coverage.

Evidentiary and Duty-of-Disclosure Issues

Because theft by its nature occurs without witnesses and often without immediate traces, fulfilling contractual duties — such as prompt notification to the police and the insurer, and submission of as detailed and credible an inventory of stolen items as possible — is of considerable practical importance for enforcing the coverage claim.