If cash is stolen, if a window is broken… how much does “fire insurance” cover in the event of a violent burglary?
Without “coverage for household goods,” cash and precious metals are not covered in the event of theft!
Violent robberies have been occurring one after another across Japan. While crime prevention is important, if you actually become a victim, will your “insurance” compensate you for the stolen precious metals and cash?
Even if you have fire insurance, it will not cover the theft unless the insurance policy includes coverage for household goods,” said a financial planner at a major financial planning firm.
Izumi Oishi, a financial planner, says, “Many people have fire insurance policies that do not cover theft of their belongings. According to Oishi, most fire insurance policies have basic coverage, which includes
- Compensation for fire, lightning, bursts and explosions
- Wind, hail, and snow damage coverage
- Water damage coverage
- Compensation for external collision, water damage, theft, etc.
- Compensation for damage, defacement, etc.
are said to be included.
Fire insurance covers “buildings” and “household goods. When you sign a contract, you can choose either both or just the building, and you can also remove coverage that you consider unnecessary (some coverage, such as fire coverage, cannot be removed).
For example, if a theft occurs and the building is damaged, such as doors and windows are broken, the “building coverage” of the fire insurance policy will cover the damage, and if furniture or other items in the building are damaged or stolen, the “household goods coverage” of the fire insurance policy will cover the damage. In other words, even if you have fire insurance, if your policy does not include coverage for household goods, it will not cover “precious metals” or “cash” in the event of theft.
Then, if a ring worth 1 million yen is stolen, will it be compensated for 1 million yen?
The maximum amount of compensation depends on the insurance company and the subject of coverage. For example, some insurers pay 200,000 yen per ring (or pair of rings), some pay 300,000 yen per ring (or pair of rings), and others pay slightly different amounts.
If cash is stolen, up to ¥200,000 will be covered.
If a ring worth 1,000,000 yen is stolen, does that mean that 1,000,000 yen is not covered?
If the value of the item exceeds the limit or is difficult to evaluate, it is safe to declare the item as “clearly marked property” and specify on the insurance policy that it is covered by insurance. However, the more coverage above the limit, the higher the premium will be.
What if cash is stolen?
If you report the theft to the police, you will be given an “acceptance number. You then contact the insurance company and submit the required documents. However, you must prove that the cash was indeed in your home and that it was stolen.
The insurance company may ask a variety of questions, depending on the insurance company, such as where the money was found and what it was used for.
Cash, stamps, and securities usually cost between 200,000 yen and 300,000 yen (depending on the insurance company). If a bankbook is stolen, compensation is covered if the money is withdrawn. For example, if the maximum coverage for a stolen bankbook is ¥2,000,000, the maximum coverage is the lower of ¥2,000,000 or the amount insured for household goods, per accident.
