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.
Additional Benefits
* The policy holder would get a maximum of 10% of the total sum insured, as the
cost of changing locks or cost of repairs to the insured property, after the
event takes places.
* 10% of the loss or Rs 10000, whichever is less, can be rewarded as expenses
for clearance of debris, movement and protection.
* The policyholder can avail a maximum of Rs. 10000 for restoring paper files,
plans, records and drawings, data and installation costs for computer programs.
* A maximum of 10% of the total sum insured can be availed for minimization of
losses.
* The employees of the policyholder can avail a maximum of Rs. 5000 for loss or
damage to their property. |
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