It takes years of effort for creating assets, however, one theft or any other loss/damage can cripple you financially. Burglary insurance is the right policy to keep your property safe and gets peace of mind. It covers losses or damages to property due to burglary and housebreaking. Though burglary insurance is meant to offer comprehensive coverage, there are some instances where the insurer will not offer coverage. Burglary insurance can be purchased by those who have office insurance policy as the insurance policy will offer compensation in case of theft of office items.
Key Takeaways
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The “Forcible Entry” Prerequisite: In 2026, the Supreme Court continues to uphold that for a “Burglary” claim, there must be detectable evidence of violence used to enter or exit the premises. If a thief walks in through an unlocked door, it is “Theft” (not Burglary) and requires a separate add-on.
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The 7-Day Rule: If you plan to leave your home or office vacant for more than a week, you must notify the insurer. Failure to do so gives the insurer a legal “Out,” as the risk of loss significantly increases when a property is uninhabited.
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The “Key” Clause: Loss of money from a safe is only covered if the safe was opened by force. If the burglar used your key (unless they snatched it through violence), the claim is almost always rejected.
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Amortization of Risk: Items like computers or office furniture are typically covered based on Actual Cash Value (ACV), meaning depreciation is deducted. If you want the full cost of a new item, you must opt for a “Reinstatement Value” clause.
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Property Add-ons: Since Burglary Insurance is a subset of Property Insurance, any exclusion in your fire policy (like War or Nuclear risks) also applies to your burglary cover.
Burglary insurance doesn’t cover the following:
- The amount of the excess as specified in the policy document
- Gold or silver articles, precious metals, and any other articles which are made of precious metals, medals, coins, sculptures, rare books of any kind
- Loss or damage caused by wear and tear or gradual deterioration
- Loss or damage caused by the sack, loot, pilferage, etc.
- Unexplained losses or damages due to errors, omissions
- Theft or attempted theft from open spaces, gardens, yards, etc.; unless the contents thereof are specifically mentioned in the policy document
- Loss or damage directly or indirectly caused by or arising from any corruption, destruction, or distortion
- Goods held in trust, cash, jewelry, title deeds, or business books, unless they are specifically insured
- Loss, damage, or expense of whatsoever nature directly or indirectly by any act of terrorism or war
- Loss or damage caused to the insured property due to breach of trust or misfeasance by the insured
- Loss of money from safe following the use of the key unless such key has been obtained by violence
- Any loss or damage directly or indirectly happens to the premises from the nuclear weapon material
- Any loss or damage to glass, plate, or any decoration thereon
- Consequential loss or damage or legal liability of any type
- Loss or damage caused by loot, sack, spillage, or pilferage
Read More: What are the Requirements to purchase a Property Insurance Policy?
Further, the burglary insurance policy will not cover losses or damages if the premise is left unattended for five or more consecutive days. Moreover, if the material alteration is made on the premises, whereby the risk is increased, the insurer will not cover any loss or damage that may arise due to alterations. Also, if the insurable interest has passed from the policyholder to the other party otherwise by will, the burglary insurance will not offer coverage. Any loss or damage to the insured property which has been removed from the premise in which it is stated to be safe as far as expressly provided in the policy, will not be covered.
As burglary insurance is part of property insurance, and therefore, the exclusion list of the property insurance policy will be applicable to burglary insurance as well.
Note: It is not an exhaustive list and for more information, read your burglary insurance policy document or property insurance policy document or contact the insurer.
Read More: Who should buy Property and Casualty Insurance?
Summary: Burglary Insurance Exclusions & Terms
Case on Property Insurance
A few years ago, Mrs. Rajni Sharma bought burglary insurance to cover her house content worth Rs 10 lakh. Last year, she left for Australia to surprise her daughter on her birthday who was studying mass communication there. As it was the first time that Rajni was going to Australia, she decided to stay there for one month. While Rajni informed her friends and relatives about her travel plans, she forgot to inform her insurance company. When Rajni was away in Australia, burglars kicked in a panel in her house’s back door and stole many valuable items. During that time, her neighbor, Mr. Rajiv Saxena was also going to Shimla to attend one of his relative’s marriages. The thieves did not break the locks of the house and as no one was at home, they easily stole items. When, after one month, Rajni came back to India, she found some of her items missing. The burglary was captured on Rajiv’s CCTV cameras. Then later she filed a claim with her insurance company refused to settle it as she left her house unattended for more than seven consecutive days and did not inform her insurer about this.
Frequently Asked Questions (FAQs)
Q1: What is the difference between “Burglary” and “Theft” insurance?
Burglary insurance requires proof of forced entry (broken windows, damaged locks). Theft insurance (often an add-on) covers the missing property even if the intruder entered through an open door or without visible force.
Q2: Will my claim be paid if my house help steals my laptop?
No. Standard burglary insurance excludes “Internal Theft” by domestic staff or employees. To cover this, you need a Fidelity Guarantee policy or a specific extension for theft by employees.
Q3: Can I get coverage for cash kept in my office drawer?
Usually, no. Cash is only covered if it is kept in a locked safe or strongroom and specifically mentioned in the policy schedule. Even then, most policies have a sub-limit (e.g., ₹25,000) for cash.
Q4: If I install CCTV and high-security locks, does my premium go down?
Yes. In 2026, insurers offer “Safety Discounts” for properties with active surveillance and smart security systems. These measures reduce the likelihood of a successful break-in, thereby lowering your risk profile.
Q5: What happens if I forget to inform the insurer about my month-long vacation?
As shown in the case study, the insurer can repudiate (reject) the claim entirely. The contract assumes the property is under normal occupancy. Leaving it vacant for more than 7 days (or 5 in some cases) without notice is considered a “Material Change in Risk.”
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
