Burglary Insurance: Everything You Need to Know

What is Burglary Insurance?

Burglary means forceful or illegal entry into someone’s house and stealing or robbing things.
So burglary insurance protects your loss of property due to burglary activity like Theft, or armed robbery. But this will not cover the loss due to any war, riots, invasion, etc.

Why Burglary Insurance is Important?

It is a known fact that there is always a fear of theft or robbery of your hard-earned money and other valuable things in your mind.
With technological advancement, thieves are also changing their stealing techniques. Now, it does not take much time for them to get into someone’s house and steal or rob valuable items even after tight security. Due to this, the number of thefts, robberies, etc. is increasing day by day.
So, it is better to secure all your properties in advance to avoid difficulties, if any such misfortune happens in the future.

Who should buy Burglary Insurance?

Whenever you have to leave your home for any reason, or even when you are sleeping, there is always a fear of theft of your valuable belongings. So, to do your work or sleep without stress, you should buy burglary insurance.

In the following conditions, you must buy burglary insurance:

• If you have to leave your home unguarded for a longer duration
• If you are a business owner and many people visit your building daily
• If you have a godown
• If you stay alone at your home and you go office daily for a job

When you buy burglary insurance, it provides security to your properties in your absence.

Features of Burglary Insurance

• This policy covers losses due to both theft and burglary. So it is called burglary and theft insurance.
• Homeowners, tenants, and business owners can buy this policy.
• It covers the properties inside the premises of your house and/or building related to your business.
• You can avail the coverage of losses due to situations like riots, and strikes by opting for add-ons. Also, death or some kind of injury due to burglary can also be covered under this policy by taking an add-on.
• It works on total value or first loss manner.
• The policy is flexible. So, you can change the coverage properties and coverage amount at any point of time in the duration of the policy.
• There are many types of burglary instances. So you can choose a policy according to your requirements.

Types of Burglary Insurance

On the basis of the coverage amount, burglary insurance is divided into the following 3 types.

1. Full value Insurance:- This policy provides coverage for the total value of the insured property.
2. First Loss Insurance:- It covers part of the cost of the property, not the total cost. This is applicable when the total value of the property can not be estimated.
3. Stock Declaration Insurance:- When the number of stuck varies from time to time in your business, the exact value of the stock can not be calculated. In this case, this insurance is applicable. Here the highest value of the stock will be taken into consideration while insuring the property.

Depending on the type of coverage, burglary insurance is divided into the following types.

1. Money in Transit Insurance:- In some companies, most of their money is in movement. This policy ensures that money is in transit.
2. Business Premises Insurance:- This policy ensures the loss or damage of properties inside your business premises.
3. Dwelling Insurance:- This policy protects your home from loss due to theft or other burglary activities.
4. Jewelry and Valuable policy:- This policy protects against the loss of your jewelry, artifacts, and other valuable things due to burglary activities.
5. Cash in Safe policy:- It covers the cash that you have kept safely in your house or business premises.

What is covered under Burglary Insurance?

Loss or damage of properties due to these burglary activities are covered under this policy.

1. Forceful an illegal entry:- When one or more persons enter your premises illegally with the intention of stealing or damaging your properties, then the loss due to the damage of the property due to the illegal entry will be covered by this policy.
2. Thieve hiding inside premises:- When the person attempting to steal your property is still inside your premises, then the loss will be covered by the policy.
3. Armed robbery:- When a person or a group of robbers with weapons try to rob your assets, then the loss/damage will be covered by the policy.

The things that are covered under this policy are:

• Furniture of home and other home appliances
• Electrical and electronics equipment
• Cash and other valuables like bonds
• Stocks of trade
• Money in transit
• Cash stored in a safe
• Business assets like machinery, plants
• Pieces of jewelry etc.

This policy may cover your losses on the basis of bulk items or first loss.

What is not covered under this policy?

1. Family members or staff are involved:- When any of your family members or staff are involved in theft or other burglary activities, then the loss will not be covered by this policy.
2. Property is unguarded for a long duration:- When you go for a long vacation, i.e. for 7 days or more, leaving your property unguarded, then the company will not cover the loss.
3. Damage due to nuclear weapons:- If your property gets destroyed by any kind of nuclear weapon, then this policy will not cover the loss.
4. Damage due to war, invasion, etc.:- When your property gets damaged or destroyed due to war, invasion, or other attacks, then the loss will not be covered by this policy.
5. Damage due to order of government authority:- When any destruction or complete destruction of your property occurs due to the order of government authority, then this policy will not cover the loss.
6. Damage due to strikes, riots-like situations.
7. Consequential damage:- The consequential damages due to theft or burglary are not covered under this policy. This policy covers only the direct damages or loss.
8. Transfer of rights of property:- If you transfer the rights or ownership to some other person willingly or by government law, then that property will not be covered further under this policy.
9. Closed factory or godown without any security:- If a factory or godown is closed with no security guarding it, then the loss due to theft or burglary will not be covered by this policy.
10. Goods lying in the open:- If you do not store your goods properly and leave them in the open, then their loss due to theft or burglary will not be covered by this policy.
11. Theft with duplicate key:- If the person or group of people is still your property with the help of a duplicate key, then the loss will not be covered in this policy.
12. Damage because of regular wear and tear:– If damage to the properties is caused due to gradual deterioration because of long usage, then that loss will not be covered under this policy.

Add-ons of Burglary Insurance

1. Injuries during burglary: This add-on covers the injuries that occurred during a burglary. Under this add-on, the following conditions are covered:
   • Death:- If the insured or his/her family members die because of any accident directly due to the burglary, then the insurer will pay the insured sum. This is only applicable when the person dies within 12 months after the accident. Again, it will cover this only if the death occurs during the duration of insurance.
   • Permanent total disability:- If the insured or any of his/her family suffer from any of these, then this insurance will cover the loss on:
     • Total and permanent loss of sight in one or both eyes
     • Total and permanent physical separation/loss of use of one or both hands
     • Total and permanent physical separation/loss of one or both feet
2. Money: When you take this add-on, the insurer covers the loss of money you have stored in a very secured locker inside a strong room inside the premises, due to theft or burglary. The money stored should not be more than Rs. 50,000. Here money means:
   • Currency Coins
   • Bank Notes
   • Currency Notes
   • Cheques
   • Postal Orders
   • Money Orders
   • Credit card sales vouchers
   • Negotiable Securities
3. Damage to safe and strong room: This add-on covers the damage that occurred to a safe and/or strong room up to Rs. 10,00,000 rupees. However, the loss due to breakage of glass is not included in this category.
4. Seasonal/festive increase: This add-on increases your insured amount by 10% or Rs. 10,00,000, whichever is less in following festivals or seasons.
   • New year:- In this season, the insured amount increases during the time starting from 30 days before the new year to 15 days after the new year.
   • Diwali:- Here, the time duration for the increase in the amount of sum insured lasts from 30 days before Diwali to 10 days after Diwali.
5. Bank and public holiday extension: Here the insured amount will increase by 10% or Rs. 10,00,000 whichever is less during public holidays and bank holidays.
6. Riots, strikes, and malicious damage cover: This add-on covers the loss or damage of insured properties due to situations like riots and strikes according to the terms and conditions of the policy.

Types of Properties Covered in Burglary Insurance

1. House:- Your house, whether it be a flat in an apartment, an individual building or a large palace, will be covered by this policy.
2. Shops:- All kinds of shops, like grocery shops, electronics shops, and clothing stores are covered under this policy.
3. Home repair business:- Home repair businesses like carpentry and plumbing are covered by this policy.
4. Food business:- Food businesses like hotels, restaurants, tea centers, and bakeries are also covered under this policy.
5. Health centers:- This policy covers health centers like hospitals, clinics, medicine stores, and diagnostic centers.
6. Educational institutes:- Educational institutes like schools, colleges, and coaching centers are also covered by this policy.
7. Lifestyles and Fitness Centers:- Lifestyle and fitness centers like beauty parlors, gyms, spas, etc. are covered under this policy.
8. Automobile showrooms:- Auto mobile showrooms like bike, car, and tractor showrooms are covered under this policy.

This policy provides coverage to all types of business i.e. micro, small, medium, and macro businesses.

Eligibility Criteria to buy Burglary Insurance

If you are a tenant, you own a house or a business, then you are eligible to buy this policy.

Things to Consider Before Purchasing Burglary Insurance

Like all other insurances, you must look into these important things, when you buy burglary insurance to avoid extra premiums and other difficulties during a claim.

1. Sum Insured:- You should check the sum insured in your policy. Damage or loss due to theft or burglary can cause a huge loss. So, you should buy a policy with an adequate insured sum. To make the right decision, calculate the total cost of all the assets you want to insure.
2. Coverage:- Generally, jewelry is not covered in the basic policy. You have to take add-ons in that case. So, check all the things and cases that are covered under the policy. Also, check whether this policy covers only theft or it also covers burglary.
3. Things covered in your policy:- You make sure to cover all the valuable items in your policy.
4. Premium amount:- Check the premium before purchasing the policy. You can reduce the premium by opting for deductibles or other such steps.
5. Compare the policies online:- Compare all the possible policies online and choose the best which provides an adequate amount of coverage and also covers all the things you want to cover at the best premium rate.

When Can You Claim Your Burglary Insurance?

Whenever your insured properties are lost or damaged due to theft or burglary under any of the covered conditions, you can claim the burglary insurance.

To get a better idea refer to the conditions that are covered and not covered under burglary insurance.

How to Claim Your Burglary Insurance?

If you want to get your loss due to theft or burglary, then you must follow the steps given below.

1. Inform your insurer immediately after the incident. Also, file an FIR at the nearby police station.
2. Register your claim within 14 days of the incident with all the details about the incident.
3. Provide evidence about the mishap if available. Do not hide any details. This may cause rejection of your claim.

Documents Required to Claim Burglary Insurance

• Duly filled claim form
• Policy copy
• FIR copy
• Photographs showing damages to the properties and evidence of the theft or robbery
• Original repair bills (in case of damage)
• Purchase receipts or stock records to know the value of the damage.

You may be required to submit other documents when needed.