What does Theft include in insurance terms?

In insurance terms, theft encompasses the unlawful taking of another person's property with the intent to permanently deprive the owner of it. This definition is comprehensive and includes various forms of theft, such as larceny, shoplifting, and other forms of stealing, regardless of how the theft occurs.

This concept is critical for understanding coverage under personal lines insurance policies. Many policies provide coverage for theft, allowing policyholders to recover their losses if their property is stolen. By correctly identifying theft as the unlawful taking of others' property, it becomes clear that insurance is designed to protect against these losses, as opposed to situations classified under burglary, property damage, or losses caused by natural disasters, which have different implications and coverage stipulations. Understanding this definition is essential for both insurers and insureds when navigating claims and creating policies.