Holiday Shopping Trends 2024: 84% of Americans Plan to Buy Online, But Porch Pirates and Payment Plans Could Hamper Gift Giving | Insurify

Homeowners insurance covers package thefts, but 97% of stolen goods cost less than the most common deductible

Package theft victims who can’t get a refund or replacement from the retailer have another option: filing a claim with their renters or home insurance company. But 62% of package theft victims in Insurify’s poll didn’t know their insurance covered the loss.

Even if they had known, filing a claim probably wasn’t worthwhile.

The average cost of the most valuable package consumers reported stolen is $235, according to Insurify survey data. Only 2.6% of stolen parcels cost more than the typical $1,000 home insurance deductible, and less than 10% of shoppers plan to spend more than $1,000 on all holiday gifts. Renters insurance also covers package theft, but the most common deductible of $500 is still higher than the value of most stolen packages.

If the price of stolen goods exceeds the deductible, policyholders need to balance the package’s value with how much their premium could increase from a claim, says Jacob Gee, a licensed insurance agent with Insurify.

“Home insurance is intended for major losses, not necessarily day-to-day occurrences. Rates will increase for the next five years if [insurers pay out] a claim. So, it would be a matter of comparing the amount of the claim versus the amount you would pay as a claim surcharge for the next five years,” said Gee.

Only one-quarter of victims have filed package theft claims with their insurers in the past. Insurify survey participants who plan to shop for holiday gifts at Best Buy were the most likely to have filed a claim (44%), possibly to cover costly electronics.

Gender differences further highlight this trend. Though men (33%) have experienced less parcel loss than women (40%), men file 38% more home insurance claims for stolen packages. Men are also 25% more likely to say they’ll shop for holiday gifts at Best Buy, and electronics thefts are often costly enough to rationalize a home insurance claim.

Filing a claim for a single stolen package — even for expensive items — is hard to justify. Homeowners have already seen a 20% increase in home insurance premiums between 2021 and 2023, pushing the average annual rate to $2,377.

Homeowners need to weigh the financial cost of absorbing this loss against potentially facing further home insurance premium hikes for filing a claim.

Insurers can take several days to months to process a home insurance claim, meaning the 18% of gift shoppers who plan to buy with a week or less to spare would likely receive reimbursement after the holiday season.