I felt my pocket lighten halfway through the hike. I retraced my steps for two hours, but the client’s house key was gone. The problem? It wasn’t a standard key. It was a high-security Medeco key for a luxury condo that requires a registered locksmith to duplicate, and the owner is demanding I re-key the entire perimeter because her address was on the tag.
Key Takeaways
- Address on Key Tags is a Sin: If you label a key with the address, you have created a security breach. Insurance requires you to re-key all locks, not just replace the key.
- “Lost Key” Endorsement: This is a specific line item. General Liability does not cover the cost of a locksmith. You need “Lost Key” coverage.
- Smart Locks are Expensive: If you lose a physical backup key for a smart system, the whole cylinder might need replacing.
- Code Coverage: Some policies pay for a locksmith but cap it at $500. A full house re-key in 2026 costs $1,000 – $2,000.
The “Why” (The Trap): The Limit Cap
Most sitters gloss over this coverage. “I won’t lose a key,” they say. But the trap isn’t just the
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500**.
I called a Chicago locksmith for a 2026 quote:
- Service Call: $150
- Re-key 4 doors: $800
- Total: $950.
Your $500 limit leaves you paying $450 out of pocket.
[IMAGE: Screenshot of a policy document circling “Key and Lock Replacement – Limit $2,000”]
The Investigation: I Called Them
I specifically asked about “Re-keying the whole house vs. just replacing the key.”
1. Business Insurers of the Carolinas
- The Answer: They take this seriously. Their limit is often $2,500 or $5,000.
- The Condition: You must not have the address attached to the key. If you attached the address, they might still pay, but they will lecture you (and maybe drop you later).
2. PCI
- The Answer: Included in the base policy.
- The Limit: usually $2,000 or $2,500. This is sufficient for most homes but tight for a mansion.
3. Rover Guarantee
- The Answer: They cover “Property Damage,” but key replacement is a grey area often fought over. They usually require a $250 deductible. If the re-key costs $300, it’s not worth filing.
Comparison Table
| Carrier | Key Coverage Limit | Deductible | Address Tag Rule |
| PCI | ~$2,500 | $0 – $100 | Discouraged |
| BIC | $2,000 – $5,000 | $100 | Strict |
| Thimble | Varies (Check endorsements) | Varies | – |
Step-by-Step Action Plan
- Confess Immediately: Tell the owner. They need to know their home is vulnerable.
- Hire the Locksmith: Do not wait for the insurance check. You must secure the house ASAP. Pay with a credit card.
- Keep the Receipt: The invoice must say “Re-key due to lost key.”
- Submit Claim: Send the invoice to your insurer under “Lost Key Endorsement.”
FAQ
What if I use a code/smart lock?
If you forget the code, there is no financial loss. If you break the keypad trying to get in, that is “Property Damage,” not “Lost Key.”
I lost the key down a storm drain, so nobody can steal it. Do I still need to re-key?
Technically, no security breach occurred if the key is irretrievable. However, if you can’t prove it’s in the drain, the owner will insist on a re-key for peace of mind. You will likely have to pay for it.
Does this cover my car key if I lose it on the walk?
No. This insurance only covers client property. Your car key is your problem.