Question

The insured is covered under a personal auto policy and carries liability coverage, other than collision (comprehensive) coverage and collision coverage. He has a large quantity of CDs in the vehicle. The vehicle is broken into and these items are stolen. How will the insurance company handle the claim for the CDs?

Answer 1

The insurance company typically does not cover personal items like CDs under auto insurance policies. The insured would need to claim under a home or renters insurance policy for such personal property theft.

Step-by-step explanation:

The question concerns how an insurance company will handle a claim for stolen CDs from a vehicle when the insured carries a personal auto policy with liability, comprehensive, and collision coverage. Personal auto policies typically cover the car and some of the fixtures attached to the vehicle. However, personal property inside the vehicle, such as CDs, is often not covered under collision or other than collision (comprehensive) coverage. Instead, these items may be covered by the owner's home or renter's insurance policy. Therefore, for the CDs that were stolen, the insured would likely need to file a claim under their home or renters insurance, provided they have such a policy and it covers the theft of personal property. If the insured does not have this type of coverage, they may unfortunately need to absorb the loss themselves.