Fire Insurance Policy

Saturday, 29 January 2011

A fire insurance policy means an insurance company agrees to pay a certain amount equal to the estimated loss from the fire caused by the insured, within the time specified in the contract. Compensation is subject to change depending on the policy. Should be confirmed with the insurance company about the types of risks covered, and you can not insure the property against all risks of fire.

What is the scope of coverage of a fire insurance policy?
Fire insurance provides protection for the estimated value of the physical house. However, there are a number of exclusions to it, for example, medical bills, loss of life and domestic animals, loss of personal property, structures outside the property (including garages and pergolas), damage to landscape and accommodation costs of the time. These things can be covered with a package of extended property insurance.

What are the main types of fire insurance policies?
Specific policy: The insurer is required to pay a fixed amount below the actual value of the property. In this policy, the real value of the property is not considered in determining compensation. The average clause, which requires the insured to bear the loss, to some extent, does not play an important role in this policy. If the insurer has inserted the clause, the policy is known as a policy on average.

Comprehensive policy: This all-in-a compensation policy for loss by fire, theft, robbery and third-party risks. The policyholder can also receive payment for loss of profits caused by the fire until the business closed.

With values of the policy: This policy is a departure from the standard contract compensation. The amount of compensation is fixed and the real loss is not taken into account.

Floating Policy: This policy is subject to the “average clause”. The extension of coverage extends to the different properties that belong to the policyholder under the same contract and the premium. The policy also may provide protection to assets held in two different shops.

The replacement or restoration policy: This policy is subject to reinstatement clause, which requires the insurance company to pay to replace damaged property. So, instead of giving cash, the insurer may restore the property as an alternative.

Why do you need fire insurance?
Fire insurance is important because a disaster can strike at any time. There may be many factors behind a fire, e.g. fire, natural elements, faulty wiring, etc. Some data that highlight the importance of fire insurance include:
Fire contributes to the maximum number of deaths in the United States due to natural disasters.
Eight out of ten fire deaths occur at home.
A home fire occurs after every 77 seconds.
The main reason for a residential fire is cooking unattended.

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