I was recently bringing my brand new large-screen television home in my car. I had to stop to do an errand along the way, and when I returned to unlock my car, I realised that someone had already done it for me -- my car had been broken into and my television stolen. Is it covered under either my homeowners policy or my automobile policy? -- Couch Potato in Distress

Dear Couch Potato:

Don't worry! As long as you have homeowners (or tenants) insurance, you'll be channel-surfing again in no time! Generally, any items stolen from your car that are not part of the car are covered under most homeowners/tenants policies -- another good reason for insuring your house or apartment!

Anything that is stolen that is part of the equipment of the car, such as its stereo system, would be covered under your automobile's comprehensive insurance, if you carry that coverage. Your homeowners insurance would also kick in if the loss took place somewhere else, besides your car -- for example, if your skis were stolen from outside the chalet while you were inside taking a break.

However, any losses that you claim must be for items that would normally be covered under your homeowners policy. A laptop computer, for instance, might be considered business property and may be limited to the premises.

You should also have receipts to verify the ownership of any items you claim. Insurers will not pay for something you can't prove you owned, however honest your face may be! If they were to do so, insurance fraud -- which already costs an estimated $1.3 billion a year -- would skyrocket, as would our insurance premiums. It's not just the insurer who foots the bill for the "phantom" camcorder that never existed -- we all pay the price!

When making an insurance claim, also keep in mind that any insurance payment you receive will normally be subject to the deductible -- the portion of the claim you've agreed to pay -- on your homeowners policy. Since this amount could be in the range of $500, you may want to reconsider making a claim at all if the value of the item that was stolen is not much greater than your deductible. For example, if your $325 sweater was stolen and your deductible is $300, it certainly does not make sense to claim for that loss. Furthermore, if you have numerous claims on your record, it is likely to affect your rating with your insurer, and could even result in the non-renewal of your policy.

The best way to avoid the deductible and hold onto your prized possessions is to practise common sense. Don't leave valuable items in plain view, and always lock your car. Never give a thief an even break!

Note: The preceding information is based on the Insurance Bureau of Canada's guideline wordings. Remember, policies vary, so when in doubt, consult your insurance representative.