Burglary Insurance is designed to indemnify the Insured against the risk of loss or damage to the insured property as a result of theft.

A burglary policy basically provides the following coverage :-
i. Loss by theft accompanied by actual forcible and violent entry and/or exit of building.
ii. Damage to the property insured or to the premises as result of theft or any attempt thereat.

There are basically two different ways of rating a burglary risk, namely on Full Value or First Loss basis.

Full Value Policies
This basis is adopted when there exist a possibility of the entire property insured being stolen at any one time. The rate to be applied shall be on the full value of the property to be insured. Care must be taken to ensure that the sum insured is adequate as the burglary insurance will be subjected to the Average Clause and the Insured will not be fully indemnified at the time of loss if the property is under insured. The correct sum insured should be what the Proposer considers to be the highest value at risk at any one time.

First Loss Policies
This basis is adopted in cases when it is practically not possible for the entire property insured to be stolen at the same time. The rates shall be on the selected sum insured amount which in the Insured’s opinion would represent the maximum potential loss at any one time. The sum insured selected should, based on the Insured’s own assessment, not be less than the anticipated maximum probable single loss during a burglary but in no event should it be less than 25% of the total value of the Property Insured.

The Proposer is required to declare the full value at the risk of the Property Insured and the sum insured proposed for the burglary insurance. Average clause will apply to the burglary loss should the actual full value at risk be more than the value declared.

*Hold-Ups may be an extension in certain insurance companies’ burglary policy contracts.