What is Burglary Insurance?

Burglary is an act of theft that involves breaking into a property and stealing from it. It can take place at homes, offices, warehouses, etc., at any time and can cause distress to homeowners and businessmen.

Besides causing emotional distress, burglary leaves behind a financial loss, which may be very difficult to recover. This is where burglary insurance comes to the rescue. Let’s understand what it is and how it benefits the insured.

What is Burglary Insurance?

Burglary insurance is an insurance that compensates the insured for losses of property due to burglary or housebreaking. Under this insurance contract, the insurer provides financial protection to the insured in case he suffers a loss of property, goods, etc., due to an act of burglary.

If you are looking for a burglary policy, you can opt for TATA AIG’s affordable and comprehensive burglary and fire insurance plan. It protects you from unexpected financial stress in the event of a burglary.

Burglary insurance can be divided into three types:

• Full Value Insurance – It provides coverage for the entire property that is insured.
• First Loss Insurance- Under this type of insurance, the insured can choose the percentage of the assets he wants to be insured. Such a policy is taken when the chances of a total loss are less.
• Stock Declaration Insurance- Under this policy, the sum assured is fixed at the maximum stock value expected by the policyholder. It is beneficial when the stock value fluctuates throughout the year.

What Is Covered Under Burglary Insurance?

1. Stolen Assets/Property

Under burglary insurance, you get compensation/coverage for the assets that have been stolen from the insured property. The coverage amount depends on the type of policy and the value of the stolen assets. Most insurance providers use actual cash value or replacement cash value to calculate the value of stolen assets.

1. Damage to Property

It includes coverage for damage caused to the property as a result of the burglary. It may include damaged locks, broken windows, damage to the doors and so on. Property damage is covered under a separate coverage limit under most insurance policies.

1. Interruption of Business Activities

An act of burglary may interrupt business activities due to damage caused to the property. An insurance coverage may provide for expenses related to business relocation and such expenses in connection with the interruption of business activities.

1. Legal Charges

In case the burglary incident results in a lawsuit, burglary insurance also compensates the insured for any legal charges that he may have incurred. It includes expenses such as attorney fees, court charges, etc.

1. Replacement Expenses

If the insured replaces the damaged property after a burglary incident, the insurance policy covers the expenses for such replacement. The insured receives the full cost of replacement for the stolen or damaged property.

What Is Not Covered Under Burglary Insurance?

Here are some exclusions of burglary insurance you must be aware of:

• It does not cover precious jewellery, gems, cash, design plans, etc.
• There is no coverage for losses or damage due to nuclear perils, war, invasion, civil unrest, riots, strikes, etc.
• If the insured property is uninhabited for 7 days in a row.
• If there is an involvement of the staff of a family member in the act of burglary.
• When the insured property is transferred to another individual by the insured by way of will or law.
• Damages resulting from consequential losses.

Summary

Burglary insurance plays a crucial role in safeguarding the insured from unexpected financial losses arising from burglaries. It offers compensation for damage to property, legal fees, business interruption charges, stolen asset value, etc.

All these charges may lead to significant financial losses to the insured in the absence of an insurance plan. But with the right insurance for burglary, you can safeguard yourself from financial stress and get adequate compensation in the event of a burglary.

Frequently Asked Questions

Who should buy burglary insurance?

Burglary insurance is useful for homeowners, businessmen, retailers and merchants, financial institutions, warehousing and storage companies, etc.

Why is burglary insurance important?

Burglary insurance is crucial for the following reasons:

• It provides financial protection
• Compensates for property loss or damage
• Covers the business interruption costs
• Offers liability protection
• Gives customised coverage, etc.

How much is the premium for burglary insurance?

The premium for burglary insurance depends on the property and the content covered under the insurance policy.