What is Burglary Insurance?
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Updated date : 18 May 2020
Burglary insurance is a type of insurance policy that recompenses for loss or damage caused to the insured property and valuable items such as jewellery, cash, stock of goods, furniture, etc. due to housebreaking or burglary.
When someone enters into your property in an unlawful manner to conduct a crime involving theft and violence, then it is termed as a burglary. Burglary insurance policy offers compensation for loss and damage resulting from a burglary attempt in your premises.
Burglary insurance also covers fiscal damages as well as property damage arising from:
- A forceful entry by an intruder into the insured premises
- Forceful theft or theft of property with the office premises or house premises
To avail the benefits you need to inform the insurer about the incident and also notify the authorities before filing the claim.
Burglary insurance is sometimes referred to as crime insurance as well. Burglary and robbery are often used interchangeably. But there are some differences and some similarities between the two. Both robbery and burglary are property crimes and, usually involve:
- Stealing of belongings from an individual
- Illegal entry into someone’s property with the intent of theft or committing a crime
Robbery involves forceful or violent attempt to steal someone’s belongings. For the law to identify the act as a robbery, the victim should be present on the premises at the time of the incident.
Whereas, burglary insurance is an unlawful entry into someone else’s premises with the purpose of committing a theft/crime. Unlike a robbery, it does not require the victim needs to be present at the premises where the incident took place.
Usually, Insurance companies offer home burglary insurance along with other insurance policies such as:
- Home insurance
- Travel insurance
- Personal property insurance
Before initiating your claim, the insurance companies need documented proof of possession of the insured items before the burglary. It is required to authenticate the claim and to avoid any false claims.
For business groups and organizations, burglary insurance is as important as fire and theft insurance, as it offers compensation for losses or damage after a burglary attempt or housebreaking attempt.
Burglary insurance policy offers different types of coverage options. Broadly listed are some of the main types of burglary insurance policies:
Usually, burglary insurance plans are of the following types, but this may vary from one insurer to another:
- Money in Transit Policy
- Business Premises Policy
- Private Dwelling Policy
- Jewelry and Valuable Policy
- All Risk Policy
What All is Covered in a Burglary Insurance Policy?
Burglary Insurance cover for business premises usually offers coverage for burglary and housebreaking in the insured premises. Coverage is not provided for a non-violent and unforceful attempt to theft.
Similarly, burglary insurance policies issued for residences safeguard against the theft, burglary, and house-breaking. Likewise, it recompenses for the loss of valuables and Jewellery due to a forceful attempt of housebreaking or a burglary.
Burglary Insurance Cover for Money in Transit
With this variant of burglary insurance policy, you can get coverage for robbery, dacoits, housebreaking, and hold-up.
Burglary Insurance Cover for Business Premises
Business houses can buy this type of burglary insurance policy to cover for loss or damage caused to the goods in trust, fittings, or stock-in-trade, machines and other tools like typewriters, computers, calculators etc. It also offers protection against other similar property, currency notes, and cash locked in safe. It also covers loss or damage to any part of the insured premises and its content after a burglary attempt.
It also compensates for stock-in-trade and goods on the full value or on first loss basis.
In a first loss burglary insurance policy loss or damage caused to the property is covered only once and up to a specified amount. Generally, this kind of policy is preferable for bulk commodities. The compensation amount is equal to the full value of the commodities for instance 10 to 12 percent of the full value.
Burglary Insurance Cover for Cash-in-Safe
If the burglary involves stealing of cash that was kept in a burglar-proof safe. Compensation will be provided if the policyholder keeps the cash in a safe and secure manner. The following clauses apply to the coverage provided:
- In case the duplicate key of the safe is snatched using violent means by the burglars’ then compensation will be provided for the amount of cash that is stolen. The claim will be accepted if the safe or cupboard is forcefully opened by the burglars. The force does not necessarily apply to a person or an individual but it can apply to a property as well.
- You can also take note of the cash that is kept in the safe. This will allow the insurer to offer you compensation as mentioned in the records.
Coverage for Jewelry and Valuables
It is available as an add-on cover or you can buy this as a separate cover to get protection against an attempt to steal valuables in your premises like plates, watches, jewelry, ornaments etc. This type of policy also covers the loss or damage that is caused due to an accident involving robbery, theft, and fire etc.
Depending on the insurance company you can extend the coverage for riots and striker cover, which is a general exclusion under all the burglary insurance policies.
What Is Not Covered in a Burglary Insurance Policy?
Till now we only mentioned what was covered in a burglary insurance policy but here’s what you need to know about the limitations. They may vary from one insurance company to another. But overall these are some of the common exclusions and any claim arising due to such reasons would be denied by the insurer:
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.
- If any of the family members or employees or business staff were found to be responsible for the loss or damage
- Claims arising due to the loss or damage involving promissory notes, bonds, bills, deeds, cash, treasury, cheques, stamp collections, bank notes, securities for money, books of accounts, manuscripts, documents of any type medals, and coins, unless special coverage is provided
- A burglary that took place during war conditions, invasion, the act of foreign enemy etc.
- If the property damage involves the use of nuclear weapons, bombs etc.
- Any damage resulting due to weapons, nuclear bomb etc.
- If it happened due to nationalization and to confiscation by the government authorities
- Claims arising due to consequential loss or damage are not eligible for claims
- Any loss or damage resulting due to strikes, riots, civil, commotion etc.
Burglaries can happen anywhere and anytime. All you can do take preventive measures like burglary insurance to get at least the monetary compensation for the damage incurred. You can choose a burglary insurance plan for your residential home or your office and seek the protection that you want.
Burglary insurance policies are mainly designed to risk-proof your premises from a burglary attempt that involves a violent or forceful attempt to theft. The new of theft and house-breaking are common in the news. A burglary can impose a serious threat to the safety and security of your house/ office/ other premises.
The risk of burglary is so that you cannot leave your house unattended for a longer time. And this is where a burglary insurance plan would help you enjoy your peace of mind while you are away from your home or office.
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