There are basically two different ways insuring a burglary risk namely on Full Value or First Loss basis.
Full Value Policies
This basis is adopted when there exists a possibility of the entire property insured being stolen at any one time.
Care must be taken to ensure adequacy of the sum insured since the insurance will be subjected to the Average Clause and the Insured will not be fully indemnified at the time of loss if the property is under insured. The correct sum insured should be what the Proposer considers to be the highest value at risk at any one time.
For insurance on stock, particularly if it is subject to seasonal fluctuations, the Stock Declaration Endorsement will require the Proposer to make monthly or quarterly declarations based on the highest value at risk during the preceding month or quarter respectively. This endorsement is similar to Stock the Declarations Conditions in Fire Insurance policies.
First Loss Policies
This basis is adopted when it is not possible for the entire property insured to be stolen at the same time.
The sum insured selected should be based on the Insured's own assessment but should not be less than the anticipated maximum probable single loss subject to it being less than 25% of the total value of the Property Insured at all times.