Significance of Burglary Insurance Policy for Your Home
As a homeowner, you can buy burglary cover with a comprehensive home insurance policy, allowing you to cover instances like burglary and cover the financial losses incurred due to a break-in. You can buy the burglary policy as an add-on cover or as a separate policy as is being offered by various insurers. Depending upon your choice & budget, you can buy a plan to cover your house/property against the risk of burglary.
Coverage Under Home Burglary Insurance
Policy Inclusions
Here are the inclusion of policy for which the insurer will compensate:
- Damages to Home Structure
Burglary can often involve forceful entry, damaging your home's structure, such as broken doors or walls. The policy covers the repair costs for structural damages caused by burglary. Therefore, it is essential to address these damages promptly to restore your home to its original condition.
In addition to structural damage, burglary leads to losing valuable items inside your home. Whether it is electronic appliances, furniture, or other essential belongings. The plan covers the financial loss of these content and you won't have to pay for replacing stolen items out of pocket.
Policy Exclusions
Here are the conditions that the insurer does not entertain, and no compensation is offered:
- Valuable Content Coverage
The policy does not include valuables such as jewellery, artwork, or collectables unless these items are specifically listed and covered in the policy wording.
- Involvement of the Insured or Others
Losses or damages in which the insured person, their employees, or anyone legally present on the insured property is directly involved or alleged to be involved in the incident are not covered.
For example, the claim would not be covered if the insured or someone they authorized is suspected of committing the burglary.
This policy does not cover damage caused by natural events such as earthquakes, floods, storms, cyclones, or other severe weather conditions defined in policy wordings.
- Acts of War or Civil Unrest
No coverage for the damage resulting from acts of war, invasion, terrorism, civil unrest, riots, strikes, or any actions by government authorities, including any harm resulting from military actions or political disturbances.
Damage or loss resulting from ionizing radiation, nuclear fuel, nuclear waste, or radioactive contamination is not covered. This also includes any consequences of atomic incidents.
- Radioactive or Nuclear Explosive Properties
The policy excludes coverage for damage caused by any nuclear explosive assembly or components' hazardous properties.
It does not cover any secondary losses such as loss of profit, business interruptions, or market losses. It also excludes any other forms of legal liability that may arise indirectly from the burglary.
- Safe Contents with Access by Key
Contents stolen from a safe where access was gained using a crucial or duplicate key are not covered unless the key was stolen through a robbery.
Any claims related to damage, loss of motor vehicles or trailers are not covered due to burglary. This includes cars, motorcycles, or any other type of motor vehicle.
This policy does not cover livestock loss or damage, such as farm, animals, or pets.
Note: If the insurance company claims an incident is excluded based on these conditions, the insured must prove that the claim is covered under the policy.
How to Protect Your Home Against Burglary?
Here are a few methods that you can incorporate to protect your home against burglary:
It might seem basic, but many incident occur because doors and windows are not locked or working properly. Always ensure that all entry & exit points are securely locked when you leave your home, even if it is just for a short while. The robbers know the minor loopholes in the security that lead to heavy losses.
- Install and Use Home Alarm Systems
If you have a home alarm system, set it whenever you leave the house. If you do not have one, consider buying one and installing it. An alarm system deters burglars and lowers your home insurance premium. Hence, it provides a critical alert if someone attempts to break into your home.
Investing in a CCTV setup is a good practice if you are a homeowner. However, it is essential to maintain and regularly check your security devices. If the device is faulty, fix it. Additionally, frequent checks help you identify suspicious acts or vulnerabilities.
- Avoid Advertising Your Absence
The most important yet ignored tip is to avoid telling others about your upcoming vacation or absence from the residence. Usually, thieves monitor your actions and attempt to rob during these break-ins. Instead, you can inform your trusted neighbour to watch your home when you are away.
How to Calculate Home Burglary Insurance Premium?
To calculate the home burglary insurance premium, the following factors are considered:
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Coverage Amount
The premium for home insurance policy is influenced by the amount of coverage you choose. Higher coverage limits will result in a higher premium. The sum insured should reflect the replacement value of your home and its contents.
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Location
The location of your residence impacts the premium. Areas with higher rates of incidences may result in higher premiums. Your residence's security profile and previous incident history are considered when calculating your premium.
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Deductibles
Deductibles are the amount you pay from your own pocket when making a claim. Policies with higher deductibles generally have lower premiums and vice versa. Understanding your deductible options can help manage your insurance costs.
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Value of the Content
The value of your home contents, including expensive furniture, electronics, etc., affects your premium. Higher-value items typically lead to a higher premium; additional coverage for high-value items can also influence the cost.
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Security Measures
Insurance companies often offer discounts for enhanced security measures. Investing in security systems and maintaining them can lead to reduced premiums.
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Add-ons or Optional Covers
For additional protection, consider optional covers for specific items or to enhance the scope of coverage. These optional covers may increase your premium but provide extended coverage as needed.
How to Claim Burglary Insurance for Home?
Here is a step-by-step process to file burglary insurance claims:
- Step 1: Notify the Company
Within 14 days of the incident, send a written notice of the incident to the provided address in your policy. If you think the incident might lead to a claim, explain why you believe so.
- Step 2: Report to the Police
Immediately file a complaint with the police, detailing the items lost or damaged. Obtain a copy of this complaint and any First Information Report and/or Final Report, and send these documents to the home insurance company.
- Step 3: Submit a Detailed Statement
Within 14 days, provide a detailed written statement about the loss or damage to your insurer. It should also include an estimate of the claim amount along with all the supporting documents.
- Step 4: Assist the Insurance Company
Provide any information, help, or documents if the insurer needs it.
- Step 5: Try to Recover Lost Items
Take all reasonable steps to recover any stolen items and to identify & pursue the culprit.
The insurance company will offer a settlement within 30 days after receiving all necessary documents. If your claim is rejected, the company will notify you within 30 days of receiving the last required document.
