Off-Premises Coverage: What's Protected & What Isn't?


The phrase "off-premises coverage" may sound fancy, but it's just a homeowner's insurance policy clause. This clause provides additional protection for your possessions when you cannot store them on your insured property. In some cases, this clause is added to your existing policy, but more often than not, it's included as part of your standard homeowner's policy. 

It can be useful if you have sizeable equipment best stored elsewhere, or expensive items stored at an offsite location, for example. Keep reading for the specifics of off-premises coverage.

What Is Protected Under Off-Premises Coverage?

The standard off-premises coverage is 10% of the personal property limit shown on your policy, but this number can change depending on the type of policy you purchase. For example, a homeowners policy with $100,000 of contents coverage equals $10,000 of off-premises coverage. This coverage may also offer up to $500 of extra coverage for unauthorized use of your credit cards.

What is protected under an off-premise clause can vary, but you can expect it to cover less than your overall coverage. Let's take a look at a few examples where off-premises coverage applies. 

For those who travel, off-premises coverage can cover lost or stolen luggage and its contents. This also includes theft from a hotel room or rental car. Off-premises coverage will typically cover anything unattached to or in the car. Your auto insurance policy covers physical damage to the car or theft of any of its attachments. 

Storage units and moving trucks can be covered too. Even more so, if your university student gets their laptop stolen in their dorm, off-premises coverage will help. 

Other situations may include theft of jewelry, guns, and other valuable items while you are away from home and damage caused by vandalism. 

What Isn't Protected Under Off-Premises Coverage?

Every policy has limits, so your most expensive and valuable items will likely need additional coverage. Insurance companies usually set a maximum dollar amount for certain categories of items (such as jewelry, electronics, and other expensive things) that are damaged or destroyed in an insured event. It is possible to purchase an endorsement to increase your policy's limit for these items. The same applies to larger items such as boats and other motorized watercraft.

When to consider additional coverage

If the coverage available through standard off-premise theft policies won't cover the cost of outdoor equipment like bikes, skis, and camping gear, you can increase your coverage through two methods. First, consider raising the limit of your liability. With this option, you will still have limited amounts available for your property and losses.

Your second option is purchasing a floater policy for your possessions, which can cost more than raising your liability limit but will provide better coverage and protection for your valuable possessions. Purchasing a floater policy is the best way to protect your valuables, as it covers any losses not included in your standard homeowner's policy.

While off-premises coverage can be useful for some homeowners, it is important to review your options carefully and make an informed decision about the type of policy you need. That being said, off-premises coverage is an often underrated type of insurance. It can be especially useful for homeowners whose home may be at risk of theft but unable to cover their possessions in a secure location, such as a vault or safe. If you need this kind of coverage, make sure that you have enough liability to protect yourself from claims against you and that you choose a reputable company and policy with competitive rates.

To prudently protect your lifestyle and what's involved, you need someone that understands it and plays with the same toys you do. Here at Highline Risk Solutions, we offer individualized insurance plans built for your needs. Reach out to us today to start with a free quote. 


Image by F. Muhammad from Pixabay