Answer to Question #167403 in Management for Prabhdeep

Question

Differentiate between burglary insurance and theft insurance ?(please give at least 10 points for difference)

Answer 1

·        Burglary insurance narrowly limits the policy to a particular class of criminal acts of stealing through forceful and violent entry into a premises; theft insurance is a broader policy that covers all acts of stealing without violence i.e. taking someone else’s property without their permission.

·        To file for a claim under burglary, there must be visible proof of forceful entry into a building to conduct a loot; a claim under theft is furnished by proof of nonviolent attempt into the premises.

·        Burglary insurance claim requires proof of intent to commit a crime, even if the intended crime did not take place; in a theft claim, a person must have taken the insured’s property without permission.

·        In the scope of insurance, burglary occurs inside a premises whereas a premise not necessary to label theft.

·        For one to make a theft claim, there must be proof that the thief the property with an intent to permanently deprive the owner of it, a feature not found in burglary insurance.

·        There is no element of personal contact between the insured and the burglar in proving occurrence of a burglary crime; element of personal contact is necessary in some categories of theft such as pickpocketing.

·        Theft insurance mainly deals with personal property while burglary insurance focuses on property in businesses and private premises.

·        Burglar insurance is a more common policy than theft insurance due to the existence of limiting features such as negligence in theft insurance and its broad scope.

·        Burglary insurance does not compensate for loss during riot, war or loot during civil unrest; theft insurance may or may not compensate victims depending on the insurance plan.

·        Theft insurance is a more comprehensive crime contract policy that covers all losses of personal property from stealing e.g. pickpocketing, larceny etc. comprehensive theft policies include burglary insurance and robbery insurance; burglary policies only cover a clearly defined cope of burglary.