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What is the Difference Between Theft and Burglary Insurance?

  • Author :
  • TATA AIG Team
  • Published on :
  • 11/04/2024
  • 2 min read

In the business world, protecting your property against potential losses and damages is of paramount importance. This is where it becomes crucial to have a suitable insurance plan.

Two of the most common business insurance are theft insurance and burglary insurance. Although both insurance types sound similar, they are completely different and serve different purposes in the insurance world.

Understanding the difference between theft and burglary insurance will help you choose the right coverage for your requirements and budget.

With this in mind, we have created this guide to help you understand burglary vs theft insurance in detail.

Understanding Theft Insurance Meaning

Theft insurance is a type of insurance that covers a property against the damages or losses resulting from an unforeseen theft incident.

Its main objective is to help business owners and individuals to deal with the financial impact of theft.

Some of these incidents of shoplifting, theft of valuables from a home or a commercial space, pickpocketing, etc.

Further, the stolen goods can be anything from jewellery, cash, electronics, and other valuable items.

In addition, reliable theft insurance policies may offer coverage for theft incidents occurring inside and outside the property. Identity theft can also be covered by a theft insurance policy in some cases.

Understanding Burglary Insurance Meaning

Burglary insurance has a completely different meaning as compared to theft insurance. For starters, a burglary is an act of unlawful or forceful entry into a property with an intention to commit theft, vandalise, when the property owners are not present.

In simple terms, burglary insurance is a type of insurance that offers coverage against burglary incidents. Unlike theft insurance, you must submit proof of forceful entry such as broken locks, damaged windows, etc. at the time of filing a burglary insurance claim.

Difference Between Theft and Burglary Insurance

Now that you have understood the meaning of burglary and theft insurance, let’s take an in-depth view of the key difference between theft and burglary insurance.


Theft is defined as unlawfully acquiring property or goods without the consent of its owner. It can involve a wide array of situations, such as shoplifting, stealing from a house/shop/vehicle, and pickpocketing.

On the other hand, Burglary is defined as the act of breaking into a property with the intent to steal, vandalise, and commit crimes. It usually involves forceful entry.

Coverage for Property Damage

This is a key difference between burglary and theft insurance. In most cases, theft insurance only covers the value of stolen goods that were insured. It doesn’t offer coverage for any damage done to the property.

On the other hand, burglary insurance can extend its coverage for the loss and damages to a property due to unlawful entry. This includes damages done to the locks and doors, broken windows, or any other act of vandalism.

Coverage for Stolen Goods

Although both theft and burglary insurance offer coverage for the stolen items, the level of coverage is different for each type of insurance.

In general, theft insurance offers coverage to the stolen items regardless of where they were stolen from. On the contrary, burglary insurance covers only the items that are stolen as a result of forceful entry into a commercial or residential building.

Cost of Premium

The premium cost is also a major point of difference between burglary and theft insurance. In general, Burglary insurance is more expensive as compared to theft insurance because of the broader coverage it offers.

In addition, the cost of theft and burglary insurance plans also depends on the type of insured property, sum assured amount, deductibles, and so on.

Who is it For?

Theft insurance is ideal for homeowners, vehicle owners, renters, and small shop owners who want to keep their property safe against potential theft attempts.

On the other side, a burglary insurance policy is ideal for business owners, homeowners, property managers, etc. dealing with high-risk and valuable property.

How is Burglary and Theft Insurance Different from Fire Insurance Policy?

Fire insurance is a type of insurance that often comes into the picture when talking about theft and burglary insurance.

A fire insurance policy is a type of insurance that offers coverage against unforeseen damages resulting from a fire or explosion.

This type of insurance provides financial assistance to the property owners to recover and repair the fire damages done to their property. It also offers coverage for things like debris removal, loss of income, temporary accommodation, and so on.

Bottom Line

Burglary and theft insurance may seem similar but are entirely distinct concepts in the insurance landscape. While theft is an act of illegally taking over a property without its owner’s consent, burglary refers to illegally breaking into someone’s property with the false intention of committing a crime.

We have outlined the main differences between the two insurance types. Now, it’s your turn to select the right category based on your coverage requirements and purchase a suitable insurance plan.

Opt for well-designed and comprehensive fire and burglary insurance plans that offer two-way benefits under a single scheme. Simply put, you can purchase only one plan to get coverage against fire and burglary incidents instead of purchasing an individual plan for each.

These SME insurance plans offer broad coverage and efficient claims settlement at highly competitive prices.

Frequently Asked Questions

What is the difference between burglary and robbery?

The main difference between burglary and robbery is that robbery occurs in the presence of occupants and involves threatening and even attacking them. On the other hand, burglary takes place in the absence of property owners.

Is theft covered under burglary insurance?

Yes. In most cases, theft is covered under burglary insurance plans if it occurs to the insured goods or property.

What is the main difference between robbery and theft?

Theft is the unlawful theft of someone’s personal belongings, mostly without their knowledge. Rubbery is the brutal act of breaking into someone’s property by force and taking it. It usually involves violence, threats, attacks, vandalism, and so on.

What does theft protection insurance mean?

Theft protection insurance is an insurance type that offers financial coverage to recover the value of stolen insured goods.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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