What Is Theft Insurance & Its Types?

What is Theft Insurance?

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An insurance plan that provides cover for the losses that have risen due to theft or burglary of personal belongings is called theft insurance. Theft or burglary Insurance is a major class of commercial underwritten in the assorted department and thus accounts for a large share of the department’s top income.

For your business, the Burglary insurance is as vital as the Fire insurance policy, as it permits them to recover the damages suffered by them resulting in housebreaking or burglary. The theft or burglary insurance policy has 4 main types of insurance. Let’s now know about the types of theft or burglary insurance

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What Is Theft Insurance: Types

As you already know what is theft insurance, let’s now know what are the types of theft or burglary insurance. There are total of 4 types of theft or burglary insurance policies. Let’s check out the types of theft insurance policy:

(1) Residence

(2) Business

(3) Financial and

(4) Miscellaneous

Apart from this, in-and-out burglary insurance, limited theft insurance, cash and security theft insurance, business tax evasion insurance, storekeeper burglary insurance, office theft insurance, bank burglary insurance, safe deposit theft insurance, warehouse theft insurance. So, here we go…

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What is Theft insurance: Residence

Companies offer separate insurance policies for private housing. Under this policy, the furniture of the insurer or his family members, all types of personal belongings, jewels, and other items of household items are conserved.

Generally, the insurance of jewelry and other valuable items is not exceeded by one-third of the total insured value unless an additional premium is given to it. This insurance policy is often a valued policy.

According to the terms of the policy, the items insured should be present at the accommodation and should not be used for more than 60 days during the year. There is often a condition in the insurance policy that the house or premises (whose property is insured) will remain in the care of a responsible person or a watchman will be its guard.

NOTE:

The insurance company does not take responsibility for the risks of theft of architectural items, cast copies, bills, promos, documents, etc.

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What is Theft insurance: Business Premises

Under the burglary insurance policy related to business houses (business premises), mainly the risks of theft of these properties are consolidated

(1) The merchandise of the insurer

(2) The commodity or the goods placed on trust

(3) Business decorations, office machines such as typewriters, calculators, similar business equipment, and

(4) Locked vault or not kept in safe, stiff money and other valuable items.

The value of all the above-mentioned items in this policy is indicated separately in the insurance policy as much as possible. The insurance company will be obliged to compensate these insured items on theft.

NOTE:

In addition to this, if damage to the house where the insured property was kept in relation to theft and the responsibility of repairing it comes to the insurer, it is also compensated.

This policy is very popular in the housing market. All risks are terminated in this policy, which we have mentioned in the context of “private housing theft policy” and in addition, the fire insurance of the insured property also leads to the consequences of the insurance company, fire, electrification or domestic work.

Acquires liability for loss or damage caused by the blower or gas explosion used for it. This policy is issued only for private accommodation. Its convenience is that under the same policy, the loss of fire and the possible loss of theft of the insured property becomes insured.

NOTE:

The insurance company is not liable for any losses, disasters or items that are excluded (in the Standard Fire Policy).

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What is Theft insurance: Miscellaneous

This insurance policy is taken for certain specific items of household, such as jewels, cameras, watches, painting, artifacts, etc. If the loss or damage to these items is due to fire or theft or due to any accidental reason, then the insurance company compensates them.

In addition to the risks accumulated by the “Incorporated Fire Ride Theft Policy” under this policy, those losses are also consolidated which is due to any accidental circumstances. The value of items insured in this policy is decided by mutual acceptance which is called ‘agreed value’.

Some examples of these exceptions are lost due to loss of due to internal wear or inherent defect, loss due to mechanical disturbances, or loss or damage caused by repair or cleaning of an object.

NOTE:

Hence this policy is an evaluated policy. The exceptions are given in the policy, which is not the liability of the company upon the loss.

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What is Theft insurance: Financial

“Money-in-transit” means cash currency, postal order, money order, stamp, etc. which are taken from one place to another. In the case of general merchandise, only a large amount of large amounts are sent to the banks, post offices or other business establishments by a trading institution.

In this connection, this currency is taken from one place to another in the care of the employees. There is a risk of theft during carrying such cash amount and other currency.

Now the news of such thieves is becoming very common. For the purpose of getting protection from this risk, “Money-in-Transit Insurance” is done. This insurance is usually for organizations engaged in commerce, business or industry.

When carrying the exchange currency from one place to another, or cash held at the insurer’s institute, if the loss is caused by theft, dacoit or any other accidental accident, then the insurance company is liable to compensate the insurer under this policy.

Generally, the insurance company is not liable to losses caused by these reasons

(1) Loss of cash due to mistake or omission

(2) Loss due to the dishonesty of an employee or

(3) Loss due to riots etc.

But by giving additional premium these losses can also be capped in the policy.

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What is Theft insurance: Financial: Passenger Goods Policy

People carry suitcases, trunk, bedding, and other accessories in connection with travel. In order to accelerate the theft of these items, there is a separate policy that is called “Passenger Goods Policy”. Under the policy, the insurance company receives the obligation to compensate the losses due to theft or any other incident of baggage in connection with the travel.

This policy is often released only for persons with disabilities. It is issued for a visitor for a visit to all the places in any one period (usually one year). The insurer has to give a complete description of all the goods that carry with him, and also to indicate the transportation arrangements, travel routes, and places of travel.

In this policy, the goods of traveler, watch, etc. are insured but jewelry, cameras, cash, securities, travel tickets, etc. are not included. This policy is useful for people who have to travel often.

NOTE:

By giving additional premium, the risk of loss by fire, riot, strike, terrorist proceeding, etc. is also enclosed.