Burglary policy provides coverage for loss or damage to the insured’s property due to forcible entry into or exit from the premises resulting from theft or attempted theft.
Burglary policies are usually done on a “First Loss” basis. This means that after declaring the total value of the contents, an estimate is made of the maximum value that can be stolen at any one time; this estimate is called the First Loss Sum Insured and is the maximum amount the policy will pay in the event of a claim. Since this first loss sum insured is less than the actual value at risk, a discount is usually applied to the insured’s premium.
It is required that the full value of the contents be declared as the policy is subject to clauses such as Under-insurance or Average. An Excess is usually applicable to the policy also.