Question

Which items are not covered under ‘Burglary Insurance’?

Hint:

Cash, jewellery, and employee theft are generally not covered under standard burglary policies.

Answer 1

Burglary insurance provides coverage for loss or damage due to forcible and violent entry into the insured premises.
However, certain items and situations are excluded under standard burglary insurance policies.
Common items not covered include:
1. Cash, Currency Notes, Securities — Money, negotiable instruments, bonds, and stamps are generally excluded unless specifically covered by an extension.
2. Valuable Documents — Documents like deeds, manuscripts, or business records are not covered.
3. Jewellery and Precious Items — Expensive jewellery, gold, and silver articles are usually excluded unless declared separately.
4. Loss by Employees — Loss caused by theft involving employees, partners, or persons lawfully inside the premises is excluded.
5. Unoccupied Premises — Loss occurring when the premises are left unoccupied for longer than the agreed period is not covered.
These exclusions ensure that only defined risks are covered and prevent moral hazards.