The home burglary insurance policy offers protection against the risk of loss or damage by burglary, housebreaking, theft or larceny in residential premises. Protection is offered from burglary to both the premises as well as personal belongings. Although insurance companies define burglary by means of entry and exit through "violent and forcible" means, legal instances have proved that evidence of use of force is not necessary.
If the home burglary policy is not a part of a Householders Package Policy, the applicant may have to file separate list of property to be covered, giving detailed description and individual values to avoid ambiguity. Before granting cover, inspection is carried out by agents or brokers or marketing officers of the insurance company.
The cost of home burglary insurance is payable by way of a monthly premium to the insurance company. This premium amount varies from 0.2%-4% of the value being insured on an annual basis. In order to substantiate a burglary insurance claim, one should inform the insurance company immediately (within 14 days) in writing with details of the amount lost along with the evidence.
Possessions Covered In The Policy
The home burglary insurance policy covers any loss of property, due to burglary, occurring during the policy period. The amount of claim payable would be limited to the sum insured or market value at the time of loss whichever is lower. It covers stocks owned or those held in trust or on commission and can also cover cash, valuables, securities kept in locked safe or cash box in locked steel cupboard. It also covers loss\damage to contents caused by burglary, theft or robbery only if it takes place in the insured premises and not in any other premises. Apart from compensation for the stolen property, the burglary policy covers damage to the premises like walls, doors, windows, locks, bolts, etc.
Possessions Not Covered In The Policy
Loss of or damage to livestock, motor vehicles, pedal cycles, money, securities, stamps, bullion, deeds, bonds, bills of exchange, promissory notes, share certificates, business books, manuscripts or documents of any kind cannot be claimed under a burglary policy. Any damage to property as a result of ionization, radiation or contamination by radioactivity, loss due to nuclear weapons, war/ war like situation, riot or strike or any terrorist activity and conclusion of theft by use of the keys to the safe unless obtained by force or threat are other features that are outlawed and cannot be claimed under a burglary policy.