In a homeowners policy, what does the peril of "theft" exclude?

The peril of "theft" in a homeowners policy specifically excludes theft by an insured. This means that if one of the individuals insured under the policy commits theft, the insurance company will not cover any losses resulting from that specific act. This exclusion is an important component of homeowners insurance, as it helps to prevent fraudulent claims where an insured might attempt to take advantage of their own policy.

In contrast, theft by a stranger, theft of property in a vehicle, and theft of personal property can typically be covered under a homeowners policy, depending on the exact terms and conditions stated in the policy. Each of these scenarios involves situations where the insured has not engaged in wrongdoing, and thus, the insurance company would be obligated to address the claim as per the provisions of the policy. The focus on excluding theft by an insured reinforces the principle of integrity in insurance contracts, ensuring that individuals cannot benefit from their own unlawful actions.