Fidelity insurance protects you if someone steals from your home or business
Fidelity insurance is a type of coverage that reimburses you for money or property stolen by an employee or someone you've given access to your home or business. Unlike homeowners insurance, which covers theft by outsiders, fidelity insurance covers loss caused by people you trust — household staff, contractors, caregivers, or employees who have keys or regular access to your property.
The coverage pays you directly for the value of what was taken. It does not recover the stolen items or prosecute the thief. It simply puts money back in your pocket after a verified loss occurs.
Homeowners rarely carry fidelity insurance on their own. It's more common in small businesses, but some homeowners add it if they regularly employ housekeepers, nannies, or contractors who work unsupervised in their homes.
Key Takeaways
- Fidelity insurance covers theft by people you've given access to your home or business, not theft by strangers.
- The coverage reimburses you for the cash value of stolen items after you report the loss and provide proof.
- Most homeowners policies do not include fidelity coverage, so you must add it as a separate rider or endorsement.
- The cost is usually low — often $100 to $300 per year for a homeowner — because theft by trusted employees is statistically rare.
How fidelity insurance differs from standard homeowners coverage
Your homeowners insurance covers theft by burglars, vandals, and other outsiders. It does not cover theft by people you've invited in or hired. That gap is where fidelity insurance steps in.
If a contractor steals your laptop while working on your kitchen, homeowners insurance will not pay. If your housekeeper takes jewelry, homeowners insurance will not pay. Fidelity insurance would cover both, provided you report the loss within the time frame your policy requires — usually 30 to 90 days.
The distinction matters because homeowners insurance assumes you've vetted the people inside your home. Fidelity insurance assumes you may not catch the theft immediately, and it protects you during that window.
What fidelity insurance actually covers
Fidelity coverage reimburses you for cash, jewelry, electronics, artwork, and other personal property stolen by someone with authorized access to your home. The reimbursement is based on the item's cash value at the time of loss, not its replacement cost.
Most policies cover theft by household employees, contractors, service workers, and sometimes guests — depending on how your policy is written. Some policies limit coverage to people you've hired directly; others exclude certain categories like caregivers or temporary workers.
Coverage typically does not include loss caused by family members living in your home, loss you cannot prove occurred, or theft that happens after someone's employment ends. You'll also need to report the loss within the stated deadline and provide documentation like receipts, photos, or police reports.
Who should consider adding fidelity insurance
Homeowners who regularly employ housekeeping staff, nannies, or in-home caregivers are the most common candidates. If someone has unsupervised access to your home multiple times per week or lives with you, fidelity insurance reduces your financial risk if that person steals.
Homeowners who own valuable collections — jewelry, art, antiques, or high-end electronics — may also find it worth the cost. The premium is usually low enough that the peace of mind justifies it, especially if you cannot monitor your home constantly while staff are present.
Small business owners who work from home or operate a home-based business should also consider it. If clients, contractors, or employees visit your workspace, fidelity coverage protects business equipment and cash.
How to add fidelity insurance to your homeowners policy
Fidelity insurance is not a standalone product for homeowners. You add it to your existing homeowners policy as a rider or endorsement. Contact your insurance agent and ask about adding employee dishonesty coverage or fidelity coverage to your policy.
Your agent will ask you to describe who has access to your home, what types of property you want covered, and the coverage limit you want — usually stated as a dollar amount like $5,000 or $10,000. The insurer may ask for details about the people who will have access, though background checks are not always required for homeowners policies.
The cost varies by insurer and coverage limit, but for homeowners it typically ranges from $100 to $300 per year. Some insurers bundle it with other coverage or offer it at a discount if you already carry multiple policies with them.
What happens when you file a fidelity claim
If you discover a theft, report it to your insurance company within the deadline stated in your policy — usually 30 to 90 days. You'll need to provide a description of what was stolen, the approximate date of the loss, and proof of value (receipts, photos, appraisals, or credit card statements).
The insurer may ask you to file a police report, especially for high-value items. They will investigate to confirm the theft occurred and that the person accused had access to your home. Once approved, they'll reimburse you for the cash value of the stolen property, up to your policy limit.
The process typically takes two to four weeks. You do not need to recover the stolen items or press charges for the claim to be paid, though some policies require you to cooperate with law enforcement if they become involved.
Limitations and exclusions to know
Fidelity insurance does not cover theft by family members or people living in your home as residents. It also does not cover loss you cannot document or theft that occurs after someone's employment or access ends.
Most policies exclude loss caused by negligence — for example, if you left your front door unlocked and someone walked in and stole from you. They also exclude mysterious disappearance, meaning you must have evidence that a specific person stole the item, not just that it went missing.
Coverage limits are usually modest — $5,000 to $25,000 for homeowners. If you own high-value items, you may need a separate rider or a different type of coverage like scheduled personal property insurance to protect them fully.
Frequently Asked Questions
Does my homeowners insurance already cover theft by employees?
No. Standard homeowners policies exclude theft by people you've hired or given access to your home. You must add fidelity coverage as a separate rider to be protected against employee theft.
What if I catch someone stealing but don't report it right away?
Most policies require you to report the loss within 30 to 90 days. If you miss the deadline, the claim will likely be denied. Report suspected theft to your insurer as soon as you discover it, even if you're still gathering evidence.
Can I get fidelity insurance if I've had theft before?
Yes, but some insurers may charge a higher premium or ask more questions about your hiring practices and home security. Be honest with your agent about any prior losses. Some companies will decline coverage, so you may need to shop around.
Does fidelity insurance cover cash or only items?
Most policies cover both cash and personal property. However, cash coverage is often limited to a smaller amount — sometimes $500 to $1,000 — compared to the overall policy limit. Check your specific policy for cash limits.
What's the difference between fidelity insurance and crime insurance?
Fidelity insurance covers theft by trusted employees or people with authorized access. Crime insurance is broader and covers theft by anyone, including burglary and robbery. Crime insurance is more expensive and is typically used by businesses rather than homeowners.