What does the "peril of theft" coverage protect against?

The "peril of theft" coverage specifically protects against losses related to stolen property. This means that if items are stolen from a policyholder's home or business, this coverage will help compensate for the loss of those items. Theft coverage is designed to address not just the physical act of theft itself but also the financial implications that occur as a result of having property unlawfully taken.

While options such as loss of income from business interruption, physical damage to property, and natural disasters like floods are important considerations in property insurance, they fall under different types of coverage or perils than theft. Loss of income pertains to business interruption insurance, physical damage relates to property damage coverage, and natural disasters typically require separate coverage policies or endorsements (like flood insurance) rather than being included under theft coverage. Thus, the focus of theft coverage is solely on the financial impact of stolen property.