Does renters insurance cover a loss due to scamming?

"I sold a watch on Craigslist and I think the buyer illegally paid for it since their account was just banned. This means I'll have to reimburse PayPal. Can I claim that the watch was stolen from me using my renters insurance, since the buyer used fake funds to pay for it?


“Unfortunately, the answer is no. Renters insurance will cover theft, such as if someone steals your watch from your home or your vehicle. But it would not cover you in a fraudulent sales transaction. There may be some protections afforded to you by PayPal, but you would not be able to claim the watch under your renters insurance. “
Jackie Whalen
Answered on Apr 08, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.

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