Burglary and theft in home insurance
DSIJ Intelligence / 15 Oct 2017
It may surprise you to know that your home insurance policy, which is the householder’s package policy, may be offering you insurance cover against burglary, but it may not offer any protection against theft.
A householder’s package policy (HPP) offers insurance to the house as well as to the contents of the house against damage or loss caused due to natural disasters such as earthquakes, storm, floods, thunderbolt strike, etc., mechanical or electrical breakdowns, burglary, etc. In a way, the HPP offers comprehensive cover to the house and the contents therein. So why does it exclude theft?
The difference is because of burglary, according to the legal definition, involves breaking into the house by force or through violent means. If the burglar breaks open the door or a window to enter the house and break open a cupboard to steal valuables when the homeowner is away, it will be considered as burglary and covered by the home insurance policy.
However, a theft means that the thief had access to the house or to the valuables. This may be due to the negligence of the owner. For example, many a time people forget to remove the bunch of keys from the door latch and close the door after entering the house, leaving the bunch of keys hanging on the latch. A thief might notice the keys hanging on the door latch and remove them to enter the house when the homeowner and his family members are away. Such a theft is due to the negligence of the homeowner and the insurance company may refuse to offer protection against such negligence. Of course, some insurance companies offer cover against theft as an add-on cover to the basic policy at an additional premium.
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