When does the coverage of a stolen component not apply under the insured's policy?

The coverage of a stolen component not applying when it is modified after purchase is correct because most insurance policies specify that only original, factory-installed components are covered. When a component is altered or modified, it may void the warranty or coverage associated with that part because insurers often distinguish between original equipment and aftermarket modifications. This distinction is important in assessing risk and determining liability, as modified items may not meet the safety or performance standards set by the manufacturer or insurer.

In contrast, the other scenarios do not typically impact the coverage regarding theft. For example, a vehicle being involved in an accident may still receive coverage for stolen components unless specific exclusions apply, but such an event is generally unrelated to the theft itself. Similarly, personal property is usually covered under different provisions than components of a vehicle, and the value of the item could also play a role depending on the policy's limits, but modifications specifically create a situation where coverage may be denied.