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7 Questions You Should Ask About Burglary Insurance

There will be a huge financial loss if there is burglary at a home, office or shop. Hence, the risk should be covered by an appropriate insurance plan. There is a difference between burglary and theft. You will want to buy insurance cover for theft and burglary separately. If you would like to make a burglary claim, there should be proof of forceful or violent entry into the premises. On the other hand ‘no forceful or violent entry’ is not required to be considered as theft. Hence, you can purchase a cover to include burglary as well as theft so that both of them will be covered in a very efficient manner.

What is Burglary?

  • Burglary is considered as theft or stealing of property from the insured premises through the forceful or violent entry.
  • The theft may take place inside the premises by a person or group of persons and exit the premises violently.
  • While carrying out the burglary activities, the offender may cause damage to a person or property.
  • The burglary can be proven through the visible marks on the premises

What is Theft?

  • Theft may take place at an insured property by entering through wrongful means.
  • The intruder may use duplicate keys or break open the doors to enter the premises and steal various kinds of items.
  • If the property is unlocked, the insurance company is not liable for damage.

Important Questions

You should be aware of the important questions and their answers before buying the Burglary Insurance plan.                

You should be aware of plan coverage, extensions (riders), sum assured and exclusions. You can make or break a plan by choosing the riders very carefully. The best insurance plan will cover various risks prominently.

1. What is Covered?

  • Before buying the insurance policy, you should go through the terms and conditions of the policy. As you read the policy document, you will understand the risks covered by the policy and risks that are not covered by the policy.
  • It is possible to buy a burglary insurance plan to cover your house or office.
  • If there is damage to the premises through the burglary, it will be covered by the insurance policy.
  • The inherent value lost in the promises after the burglary will be recovered by the payout made by the insurance company.
  • The premium of burglary insurance policy is based on various factors.
  • The risk perception at the premises will be assessed by the insurance company.
  • The premium paid for burglary plan is based on various factors including premium policy claim history, security measures available at the premises, and nature of stocks/items at the premises.

2. What is not Covered?

The following items are not covered by the burglary plan:

  • Precious metals (gold, silver, etc.)
  • Cash
  • Share certificates, title deeds,
  • Item present in the safe but not declared for the insurance cover
  • Items stolen by family members
  • Items stolen by employees
  • Items stolen by housemaids
  • Loss due to war, riots, strike, terrorist activities and natural calamities

If you want to declare stocks or other items whose value will change as per the market conditions, you should declare the same in the insurance policy proposal form.

The following circumstances will not cover the risk:

  • The premises is left unattended
  • The premises is not locked or properly locked
  • Alterations were made to the risk which was not brought to the notice of the insurance company
  • The insured asset has been forwarded to another party through will or other legal means
  • Failure to provide security at the premises
  • Planned burglary to make an insurance claim

3. Can I Reduce the Premium by Taking Preventive Measures?

The insurance premium received by the insurance company is based on the risk perception at your premises.

  • By installing safety devices, you will not only take precautionary measures but will also reduce the insurance premium
  • Burglar alarm can be installed at the premium to get discount on the burglar premium
  • Installation of Fencing - if your entire compound is surrounded by proper fencing, the security will be enhanced.
  • CCTC Arrangement - By installing CCTC cameras, you can monitor the movements of suspicious people and the threat perception can be reduced. It will be a good point to reduce the insurance premium

4. Types of Policies

  • The insurance company offers various kinds of policies based on the type of coverage.
  • You can buy a standard policy, declaration policy or a policy which offers the features of both standard and declaration.
  • It is possible to buy an insurance policy to cover various stocks located at various locations.

5. Why should you Take note of Complete Information?

  • To enhance insurance claim by the insurance company, you should file the claim by providing complete information to the insurance company.
  • Every loss that occurs at the premises should be documented
  • You should preserve the receipts and contracts in purchasing the products and preserving the property
  • You can document the phone calls made to the insurance company as well
  • The documents can be preserved in digital mode for enhanced safety and security

6. Is there Difference a between Market Value and Replacement Coverage?

  • You can buy a policy to protect the value of the property or valuable so that the compensation will be at market price
  • You can opt for higher deductible so that the insurance premium will be low
  • By opting for comprehensive cover, all kinds of items will be covered. It is possible to restore the condition of the items or property to its original state by subscribing to optimum cover.

7. Should you Compare Burglary Insurance Plans?

  • By going through the online reviews, you will understand the features of various kinds of insurance policies offered by different companies.
  • The price comparison websites will help you figure out the best plans to fulfill your needs.
  • It is also important to buy the most appropriate policy to fulfill your insurance needs.

Burglary Plan from Bharti AXA

Bharti AXA offers a burglary/housebreaking plan to fulfill your needs.

Benefits

  • The insurance policy covers the property present in the business premises
  • Protects stocks (in possession or in trust or commission)
  • Policy can be extended to cover securities, cash and expensive items
  • The cashbox in locked safe is covered by the insurance plan
  • Loss or damage to the property will be compensated up to the ‘sum assured’ mentioned in the insurance plan
  • Extended coverage of riots, theft and strike by paying additional premium
  • Policy will be offered based on the declaration or floater basis

Exclusions

The following items/things are not covered by the issuance policy:

  • Cash
  • Jewelry
  • Business books
  • Goods held in trust
  • Title deeds
  • Loss due to theft by employees or family members
  • Loss due to natural calamities, riots and strikes and relevant cases
  • Items stolen in safe with duplicate key and no violence is involved

If you would like to cover the excluded items, you can approach the insurance company for further negotiations so that some items will be included by paying additional premium.

United India Insurance Company

United India Insurance Company one of the oldest public sector insurance companies in India offers various kinds of insurance policies. The general insurance company offers burglary policy to cover the needs of businesses.

The insurance policy can be subscribed by any individual or business who would take steps to protect the premises in good condition as per the terms and conditions of the insurance policy.

Benefits

  • The insurance policy covers the property present in the business premises
  • The stock held in held trust or commission will be covered under the policy
  • The premises will be protected against damage
  • Cash and valuable preserved in cashbox in steel cupboard is covered by the insurance policy
  • Actual loss or damage to the property will be paid by the instance company. The maximum payment is subject to the limit expressed in the policy document (sum assured)
  • If the sum assured is not sufficient for replacement of the damage or loss, the insurance company will pay on a proportionate basis.

Exclusions

Before buying burglary insurance plan from the United India insurance company, you should be aware of the exclusions as well.

The following exclusions are applied unless you subscribe for additional coverage:

  • Shoplifting was done due to the involvement of the employee or family members
  • Some items can be recovered under the fire insurance policy
  • Loss due to riots, strikes and other natural calamities
  • Items are stolen with duplicate keys without applying violence
  • Title deeds, jewelry and other items unless they are specified in the policy

Bajaj Allianz Burglary Insurance Policy

Bajaj Allianz insurance policy offers insurance cover based on certain terms and conditions. There will be limitations and exclusions which should be noticed by subscribers so that there will not be unpleasant surprise during the policy claim.

Benefits

  • Loss or damage of items by actual or attempted burglary during the policy period
  • Property damage (change of locks at entry and exit points and other reasonable damages
  • Restoration cost of paper files, records, drawings and soft data which was used for business operations
  • Removal of debris and other damage caused at the premises due to violent or forced entry into the premises
  • Repair or replacement of the property of the employee which was laying at the employer’s premises at the time of the event

Exclusions

  • Cash and jewelry unless specified otherwise
  • If the employee or family member is involved in the burglary
  • Natural calamities such as earthquake, floods and fire
  • Damage due to radioactive material
  • Loss of items by using duplicate key and no force or coercion was present during the operation

The insured should take all reasonable steps to protect and safeguard the premises. Special precautions should be taken to protect the premises and items during out of business hours.

IF there is change in the risk perception, it should be conveyed to the insurance company in advance. Failure to provide the firsthand information about the changes in the premises will lead to rejection of the claim.

HDFC Ergo Burglary and Housebreaking Insurance Plan

HDGC Ergo offers comprehensive burglary insurance policies to protect the interests of businesses. The policy covers the hold-up risk as well as damage caused to the premises. You can buy a policy to cover burglary as well as theft.

Benefits

  • The insurance policy covers stocks, goods and contents held in trust or commission
  • Housebreaking due to forcible or violent entry
  • Cover for cash and valuables by paying additional premium
  • Theft, strike, riots and malicious coverage as extended option

Exclusions

  • Gold and silver articles (unless they are specified in the insurance policy)
  • War and warlike situations
  • Damage due to radiation or radioactive substance
  • Goods lying in open and they are insured
  • Loss due to willful negligence

Sum assured by the insurance policy will be equal to the market value of the loss of property or items. It will be calculated based on the current replacement value of items. The company includes allowance towards wear & tear, betterment and obsoleteness. Hence, it is possible to manage the best recovery by opting for the most appropriate cover.

Conclusion

Burglary insurance should form part of the expenses of small or large-scale business as it will help in the recovery of the loss or damage at the premises in a very efficient manner. As there are various kinds of insurance policies offered by reputed companies in India, you can choose the most appropriate policy to fulfill your needs. You should go through the terms and conditions of the policy. Important items which will have an impact on your business should be insured without fail.