4 common insurances against theft: Protection for the inevitable

The world is can be an unpredictable place to live in, with your hard-earned property constantly under threat from dangers, especially man-made ones such as thieves. People who usually fall victim to theft are either too busy, too clumsy, inattentive, or clueless. Security is often an overlooked aspect of property ownership, which is unfortunate when people are preyed upon by random acts of theft.

There are different kinds of stealing, categorized by the level of sanctions that are imposed upon the offender. Here are certain classifications of theft and theft insurance, brought by Philkotse.com.

I. Classifications of theft

1. Larceny/Theft

This offense involves the stealing of valuables, such as money, jewelry, and documents deemed as another person’s rightful property. Cell phone snatchers and pickpockets fall under this type. Usually, the penalties imposed on the offender are based on the value of the stolen property.

Larceny or theft is the type of theft involves the stealing of valuables deemed as another person’s rightful property

2. Robbery/Armed Robbery

This type involves the threat, or actual use, of violence. Often weapons such as guns, knives, and explosives are used to obtain the property by force, without the owner’s consent.

3. Identity theft

In the information age where sharing of personal information is inevitable, there are pitfalls to having all that data readily accessible. One such danger is identity theft, which happens when your own identity is assumed by another person without your knowledge and consent for unscrupulous purposes. Identity theft is commonly undertaken with the intent to commit illegal acts, to intimidate or blackmail, even erase all traces of the original owner’s identity.

Identity theft happens when someone else assumes your own identity without your knowledge and consent

4. Fraud

This refers to stealing another person’s property by using misrepresentation to deceive the would-be victim through false pretenses. Although it does not involve violence, it wreaks havoc on a person’s trust. For example, you agreed and signed a contract to purchase an existing business for P500,000. However, the seller did not inform you that the establishment has defaulted in paying the mortgage, leading the bank to notify the new owner (you) that it plans to take the property back. You were tricked into paying the P500,000 and the loan mortgage just to keep the business running.

5. Shoplifting

This involves surreptitiously taking goods from a retailer or shop, and is one of the most common forms of theft, with numerous cases wherein the suspect was not caught. Shoplifters can be emboldened into stealing an increasing number of items, but when they get caught, they will have to face the full force of the law.

Shoplifting involves taking goods from a retailer/shop

6. Embezzlement

This type of stealing is common in the corporate and political spheres. Embezzlement happens when a trusted public official or a high-ranking officer within a company intentionally misappropriates assets entrusted to him and his authority. This usually happens by undertaking financial transactions that stakeholders are unaware of. Or, in the case of public officials, utilizing the public’s money for their own gain.

7. Car theft

This involves stealing cars and other vehicles. According to 2017 statistics published by the Philippine National Police, there was a marked decline in both incidences of car theft and motorcycle theft. Although this type of theft may no longer be as rampant as other classifications, motorists still largely bear the responsibility of securing their cars.

There was a marked decline in both incidences of car theft and motorcycle theft in 2017

II. Insurances that protect your belongings

Fortunately, there are service providers that seek to address these security concerns with the appropriate insurance policies. The type of insurance you should purchase depends on which property you intend to protect.

1. Identity theft insurance

Although this type of insurance is not yet available for the Philippines, it secures your identity and credentials. It works in an unconventional way; instead of reimbursing you for damages suffered from your identity being stolen, it compensates you for the costs incurred in restoring it. This includes court and legal fees, lost wages and mailing fees. And this is just the basic coverage.

ID theft insurance is not yet available in the Philippines

2. Homeowners’ insurance

This protects the belongings inside your home in case a thief breaks in. The insurance provider can either pay you for the appraised amount of what you have lost or reimbursed you for the amount you need to purchase or restore it.

Homeowner's insurance protects the belongings inside your home in case of a thief breaks in

3. Business owner’s insurance

This is intended for business people that own or manage their own enterprise. Most of the time, this policy is a complete set of the essential protection a business should have, from property insurance and vehicle coverage, all the way to liability insurance.

4. Car Insurance

Most of the time, car owners purchase this insurance to avoid out of pocket expenses repairing or restoring their cars damaged by accidents. However, you can also use this kind of protection in securing your vehicle against theft. It works by reimbursing you the estimated value of your car (minus depreciation and other deductibles) in the event your vehicle is stolen.

As the adage goes, prevention is better than cure. Whenever possible, you should create conditions that discourage theft to protect your property. You might also want to invest in home security systems not only for your house but for your business establishment as well.

>>> Also check out: Car insurance in the Philippines: Comparison of Comprehensive & Liability insurance

Car insurance in the Philippines will give more coverage for your car

Instead of being tempted to overshare your personal information in various social media platforms, make sure that only people from within your circle of friends or relatives can see it. Make it a habit to park your car in well-lit areas, much better if they have a working CCTV. Lastly, it pays to be constantly aware of your surroundings as well and to have the contact number of relevant authorities ready just in case.

>>> Find out more helpful tips and advice for all car owners here