Burglary Insurance: Protect your Home and Know How to Claim Your Rights

Owning a house is one of the biggest aspirations that Indians have. It not only offers a sense of security but also helps people generate or enhance their wealth. As the price of property increases over time, it aids in creating more wealth. However, there are a few risks that come with owning a house. The chances of burglary, damages due to natural calamities, etc. are some of them. Buying a home insurance policy can offer you immunity against a lot of these perils.

However, if you are particularly concerned about a burglary or have a lot of valuables at home, burglary insurance might be a more sensible option. Here is all that you need to about it.

Understanding burglary insurance

Houses can be prone to burglary, at any time. Either when you are at work or on vacation. And if you are wondering what is burglary insurance, it is a policy that offers you coverage against burglary. In the event of any burglary or attempt to burglary, you might incur financial losses and damages to the items in the house. When someone illegally enters your house, it is considered as burglary. Irrespective of whether they steal anything or not. The policy will ensure that any damages or losses are covered during such attempts.

Different types of burglary insurance

Now that we know what burglary insurance is, the following are the different types of burglary insurance policies that you can buy.

1. First loss

This policy type ensures coverage for a part of the stock that is more likely to be burgled. The policy becomes more prominent when it is a bit difficult to estimate the entire stock.

2. Money in transit

This policy type is ideal for businesses where there is a constant movement of physical cash. Should there be a burglary or theft attempt on the cash, the policy will cover the same.

3. Stock declaration

This policy type is for businesses that find it very difficult to estimate the total cost of their stock. In such cases, a higher value of the stock is considered for the sum insured.

4. Jewellery

You can opt for this policy type if you have a considerable number of valuables, jewellery, precious stones, etc. and you fear them being stolen.

5. Cash

This policy type is ideal for both businesses and usage at home. If there is a safe where cash is stored, this policy will offer coverage for the same.

6. Complete value

This policy type is applicable to the full value of an asset, and it offers coverage for the entire stock.

Features of burglary insurance policies

Should you decide to select a burglary insurance policy, it is imperative that you would want to know its various features. Here are some of the salient features.

1. The policy can be bought either by tenants, businesses, and homeowners to safeguard the contents of the house or business in the case of a burglary.

2. Based on your need for the policy, you can choose from any of the above types of policies.

3. Burglary insurance plans usually offer coverage against robbery and theft as well.

4. You can even extend the coverage of the policy to burglary during strikes, riots, vandalism, etc.

Coverage of a burglary insurance policy

Now that we know a bit more about burglary insurance, it is only natural to be curious about what is covered under burglary insurance. The policy primarily covers any damages or losses to a home or business due to burglary. Here are the different asset classes, that are covered under the policy.

1. Electronics,

2. Home appliances,

3. Jewellery,

4. Money that is in transit,

5. Cash and other valuables,

6. Stock,

7. Assets related to a business,

8. Equipment used in business or factories, and

9. Cash that is stored in safe.

Exclusions of burglary insurance

As important as it is to know what is covered under burglary insurance, it is equally important to be aware of the exclusions of the policy. Here are the major exclusions of the policy.

1. Theft that is carried out by staff or maids,

2. Damages or losses due to natural calamities,

3. Damages or losses when the property was under renovation,

4. Coverage for certificates, treasury bills, bonds, etc., and

5. If members of the family are involved in the burglary.

Steps to claim a burglary insurance policy

You must follow these steps if you want to file a claim for a burglary insurance policy.

1. Intimate the insurance provider about the burglary at the earliest.

2. Make sure that you capture as many pictures and videos as possible, of the losses incurred.

3. Make a note of all the losses that you have incurred and inform the insurer about it.

4. Make it a point to keep the repair bills secure.

Key points to keep in mind for a burglary insurance

Here are a few key things that you must keep in mind before buying a burglary insurance policy.

1. Ensure that the coverage is for both burglary and theft.

2. Ensure to get coverage for all the items that you feel are at risk of burglary.

3. Ensure that you get adequate coverage as far as the sum insured is concerned.

Conclusion

Burglary or even an attempt to burglary can leave your house or business at a loss. If you do not wish for such as event to cause a financial risk, it is recommended to choose a burglary insurance policy, with adequate coverage. You must at least have a home insurance policy to secure your house from any unforeseen perils.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.