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Burglary insurance
3 key takeaways
Copy link to section- Burglary insurance covers losses due to theft or burglary of insured property.
- This type of insurance is essential for both homeowners and businesses.
- It often includes coverage for damages caused during the burglary.
What is burglary insurance
Copy link to sectionBurglary insurance is a specific type of property insurance that provides financial protection against losses incurred due to theft or burglary. This insurance covers the stolen items’ value and any damage caused by the break-in. It is designed to offer peace of mind to property owners by mitigating the financial impact of such criminal activities.
Importance of burglary insurance
Copy link to section- Financial Protection: Compensates for the loss of stolen items and repair costs for damages.
- Peace of Mind: Provides reassurance to homeowners and businesses against potential theft.
- Risk Management: Essential part of a comprehensive risk management strategy.
- Business Continuity: Helps businesses recover quickly from losses due to burglary.
How burglary insurance works
Copy link to sectionPolicy Purchase
To obtain burglary insurance, individuals or businesses must purchase a policy from an insurance provider. The policy outlines the terms of coverage, including what is insured, the coverage limits, and any exclusions.
Coverage Details
Burglary insurance typically covers:
- The value of stolen items.
- Repair costs for damages caused during the burglary.
- In some cases, it may also cover temporary living expenses if the property is uninhabitable.
Premium Calculation
The insurance premium is determined based on several factors, including the value of the insured property, location, security measures in place, and the claims history of the policyholder.
Filing a Claim
In the event of a burglary, the insured must file a claim with their insurance provider. This process usually involves:
- Reporting the burglary to the police and obtaining a report.
- Documenting the stolen items and any damage.
- Submitting the claim along with the police report and documentation to the insurer.
Claim Settlement
The insurance company reviews the claim and, if approved, provides compensation based on the policy terms. This compensation helps the policyholder recover the losses incurred from the burglary.
Examples of burglary insurance
Copy link to section- Homeowners: A homeowner with burglary insurance can claim compensation for stolen electronics, jewelry, and other valuables if their home is broken into.
- Businesses: A retail store with burglary insurance can recover the costs of stolen inventory and repair damages caused during a break-in.
- Renters: Renters can also purchase burglary insurance to protect their personal belongings within a rented property.
Real world application
Copy link to sectionBurglary insurance is crucial for homeowners who want to safeguard their valuable possessions. For example, a family living in a suburban area with a high incidence of break-ins may opt for burglary insurance to protect their home. If a burglary occurs, the insurance policy will cover the replacement cost of stolen items like electronics, jewelry, and personal documents, as well as any repair costs for damage caused by the intruders. This financial support helps the family recover swiftly and reduces the stress associated with such an event.
Businesses also benefit significantly from burglary insurance. Consider a small retail shop that experiences a break-in where inventory is stolen and property is damaged. The burglary insurance policy would compensate the shop owner for the value of the stolen goods and cover the costs of repairing broken windows and doors. This ensures that the business can continue operations with minimal disruption and financial strain. For businesses, burglary insurance is an essential component of a risk management strategy, helping maintain business continuity and stability.
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Sources & references

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