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Types of Burglary Insurance Policy

Burglary insurance offers coverage for any loss or damage caused to the insured property due to a burglary attempt or housebreaking. The policy also covers the damages caused to the premises by the burglars. However, the insurance provider will not cover losses or damages caused due to war, shoplifting, riots, etc. The policy will also not cover items that are stolen from a safe by obtaining a duplicate key unless it involved some threat or violence. Burglary insurance policy is different from theft insurance. It involves theft by forceful attempt and an even armed robbery.

Burglary insurance is essential for the businesses just like Fire insurance plan, as it enables them to recover the losses suffered by them after the burglary or housebreaking attempt. The coverage provided in burglary insurance is of different type. Mentioned below are some of the main types of Burglary Insurance policies:

  • Business Premises Policy
  • Money in Transit Policy
  • Private Dwelling Policy
  • All Risk Policy
  • Jewelry and Valuable Policy

Coverage Provided: 

Business premises policy usually provide coverage for housebreaking and burglary in the insured premises. It does not cover an attempt to theft without the use of violence or force and violence.Similarly, policies issued for private dwellings, provide coverage against the burglary, theft, and house-breaking. Similarly, coverage is provided for loss of Jewellery and valuables due to a burglary or violent attempt of housebreaking.

Money in Transit: 

This type of burglary insurance policy covers dacoits, hold-up, and robbery apart from theft, burglary, and house­breaking. 

Business Premises Insurance Policies: 

Burglary insurance policies issued to business premises cover loss or damage caused to goods in trust or on commission, stock-in-trade, fittings, tools of the trade such as calculators, typewriters etc. It also covers other similar property, currency notes, cash locked in safe.  It also covers loss or damage to any part of the building or its content caused by burglary or any attempt.

Protection to goods and stock-in-trade is provided on a first loss basis or full value basis.

A first loss policy covers loss or damage caused to property up to a specified amount for any one occasion. Usually, this type of policy is suitable for bulk commodities. The sum assured is always stated as a certain percentage of the full value like 10% to 12.5% of the full value.

Cash-in-Safe Insurance: 

The coverage is provided only when the cash is kept securely in a safe that is burglar proof. The coverage provided is subjected to the following clauses-

  • The loss of cash is only covered when the duplicate key is obtained using force or violent means. If the cupboard or safe is force open then it is covered by the policy. It is not necessary that the force should be used against an individual or person. It can be used against property as well.
  • It is suggested that you keep a list if the cash in safe so that the insurer can offer you compensation for the amount shown by such records.

All Risks (Valuables and Jewelry) Insurance

This policy offers coverage for loss incurred due to a burglary attempt to steal jewelry, watches, plates, ornaments and other valuables. Loss or damage resulting due to an accident including theft, fire, and robbery are thus covered.

The policies do not cover loss or damage caused due to the following reasons:

  • Loss or damage due to war, hostilities, invasion, civil war, the act of foreign enemy, rebellion, riots, revolution, military or usurped power, insurrection, civil commotion earthquake, or other convulsions of nature
  • Loss or damage incurred while repairing or renovating the property insured
  • Coverage is provided within the specified geographical limits as mentioned in the policy.

Extension under Burglary Insurance Policy

Depending on the insurer you can seek an extension of the policy in respect of damage resulting due to strike and riots damage which is a common exclusion in all the policies 

Exclusions under Home Burglary Insurance

The insurer will not accept your burglary insurance claim under the following circumstances: 

  • Loss or damage where the burglary happened due to the involvement of the insured’s family member or any of the business staff or any other person that was lawfully present on the premises where the burglary took place.
  • Any loss or damage involving bonds, deeds, promissory notes, bills of exchange, cash, cheques, treasury, bank notes, books of accounts, securities for money, stamp collections, stamps, manuscripts, medals, coins, documents of any type unless specially mentioned in the policy documents.
  • Any damage resulting due to weapons, nuclear bomb etc
  • Any damage resulting due to the invasion, war, the act of foreign enemy etc.
  • Any loss or damage incurred due to confiscation by government authorities and nationalization
  • Any type of consequential loss or damage is also not covered
  • Any damage caused by riots, strikes, civil, commotion etc.

With the increasing risk of burglaries, it is suggested for business and even house owners to safeguard themselves with different types of home burglary insurance plans.

In a Nutshell

So, the main purpose of buying a home burglary insurance plan is to risk-proof the insured premises from a forceful or violent attempt to theft. The incidents of theft, house-breaking etc. are in the news almost every day. It can impose a serious threat to the security and safety of your office/house/go down.

Nowadays, it is risky to leave your house unattended for a long duration. And when left unattended it may hamper your peace of mind. So, in that case, burglary insurance proves to be of great help!