Home Insurance

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If you have burglary insurance, you can get financial protection against loss or damage caused to your valuables.

In burglary insurance for home, valuables include=

  • Gold, silver, or any other precious article or metal which are made from precious metals
  • Jewelry, watches or precious metals, stones or stamps, collection of stamps, rare books, medals, designs, or any other types of collectibles
  • ATM cards, bonds, deeds, bills of exchange, banknotes, credit cards, treasury notes, money, securities, or any other type of negotiable instrument

Burglary insurance, which is a part of home insurance, offers cover for losses or damages to the insured property due to housebreaking or burglary. It also covers attempts of burglary and damages to premises caused by burglars. In any case, the burglary insurance provider will not cover losses or damages due to shoplifting, war, riot, etc. Also, those valuables are not covered which are stolen from a safe by using a duplicate key unless they are obtained from the threat of violence.

Case

After living for five years in a rented flat, Rajiv Saran, 35, last year shifted to his own home. Situated in Pune, he shifted there along with his wife and son. Considering the risks which his house may have to face, he purchased home insurance for Rs 50 lakh. When they shifted to their home, they also bought many expensive items to decorate their house. Some of the precious materials which they purchased were silver plates, gold wall clocks, luxurious sofa sets, etc. Rajiv also surprised her wife with a diamond necklace.

Considering various precious items which he had, Rajiv decided to opt for burglary insurance as well. He approached his home insurance company and bought the burglary insurance cover. Rajiv was confident that the policy would cover him against burglary loss or damage. He approached the home insurance company and after a round of discussions, opted for Rs 20 lakh coverage under burglary insurance. Note, the home insurance company asked for purchase or invoice bills of the items before covering them under burglary insurance.

Last month, when he was out with his wife, a burglary happened at his home. As said by Rajiv, “Me and my wife went to a nearby restaurant to celebrate our anniversary. My wife had left her phone at home. When we returned from the restaurant, she did not find her phone at home. At that time, she called on her phone, someone picked up the phone and switch it off within a few seconds. At that moment, we realized someone had stolen the phone. It immediately came to our mind that someone had entered our house. When we thoroughly inspected our house, we found that burglars took away our silver plate, one gold wall clock along with my wife’s mobile phone.”

Read More: What are the different types of accidents that can be covered by Home Insurance?

Rajiv called the police who later on the basis of the investigation report concluded that burglars entered the house by breaking the kitchen window. It was a shocking incident for Rajiv as the burglary took place in one of the safest buildings in Pune.

In this case, as Rajiv had burglary insurance covered under home insurance, he approached the insurer for the claim settlement. Here, the insurer asked for documents like a duly filled claim form, police FIR. A complete account of valuable items along with their value, etc.

Upon receiving the documents, the insurer carefully reviewed them and agreed to settle the claim. As the total loss due to the burglary was Rs 10 lakh, it fell within the purview of burglary insurance.

Here, it is important to note that Rajiv’s burglary insurance had a deductible clause. As per this clause, at the time of loss, the insurance company will not settle the entire claim, and a portion of the claim would have to be borne by the policyholder.

In this case, Rajiv’s burglary insurance had a deductible of Rs 1,00,000. As the burglary loss was Rs 10 lakh, the insurer paid only Rs 9 lakh, and the remaining Rs 1 lakh was paid by Rajiv.