I went away for the weekend. My 17-year-old son threw a party. They cracked the lock on my cellar and drank $12,000 worth of wine. I came home to empty bottles of 1982 Bordeaux. I called the police to file a report (to trigger insurance). The officer said, “This is a family matter.” The insurer said, “We don’t cover theft by household members.”
Key Takeaways
- The “Theft by Insured” Exclusion: You cannot steal from yourself. Your spouse and children (household residents) are “Insureds.” If they take your stuff, it is not theft; it is “conversion.”
- Vandalism Might Work: Sometimes, if they destroyed the cellar (smashed bottles) rather than just drinking them, you might argue Vandalism. But “drinking it” is consumption, not vandalism.
- Guests are Different: If your son’s friends stole the wine, that is covered theft. But you have to prove they took it, not your son.
- The “Lock Warranty”: If you told your insurer you have a “central station alarm” and a locked cellar to get a discount, and you left the key on the counter, they can deny for failure to maintain safeguards.
The “Why” (The Trap)
The trap is the Definition of “The Insured.”
Your son is an “Insured Person” under the policy. The policy covers “Theft,” which is the taking of property by another. An insured taking insured property is not an insurable event.
The Investigation (I Asked Adjusters)
- Scenario: Son hosts party. Friends steal wine.
- Adjuster A: “If you file a police report naming the friends, we might cover it. But you have to be willing to press charges against your son’s friends.”
- Scenario: Son drinks wine.
- Adjuster B: “Denied. Unauthorized use by a household member is excluded.”
Comparison Table
| Perpetrator | Claim Status | Requirement |
| Burglar (Stranger) | Covered | Police Report |
| Your Child (Resident) | Denied | N/A |
| Child’s Friend (Guest) | Covered (Usually) | Must prove they took it |
| Housekeeper | Covered | Police Report needed |
Step-by-Step Action Plan
- Change the Locks: Don’t rely on a simple key. Use a biometric lock or a keypad code that you change when you travel.
- [IMAGE: Photo of a keypad door lock on a wine cellar door]
- Install a Camera: A Motion-activated camera inside the cellar proves who took the bottles. If the video shows the friends taking them, you have a valid theft claim.
- Read the “Exclusions”: specifically “Theft committed by an ‘insured’.”
FAQ
What if my kid doesn’t live with me?
If they are 25 and live elsewhere, they are a guest. If they steal, it is theft (covered). If they are a student away at college, they are usually still considered a “resident” (not covered).
Can I sue my son?
You can, but you’d be suing yourself (since you are likely liable for his actions).