Home Business All About Fire Insurance: Coverage, Types and Claim Process

All About Fire Insurance: Coverage, Types and Claim Process

by Lee Mark

Fire insurance is a type of coverage that protects a policyholder from damage or loss caused to a property by a fire. This policy covers any damage caused by natural disasters such as earthquakes, floods, etc. as well as riots, terrorism, attacks, and other similar incidents. Fire insurance is the additional protection that a home insurance policyholder can obtain by paying an additional premium amount.

It is essentially a legal agreement between the insurance company and the policyholder that guarantees that the insurance company will pay for any loss or damage to the policyholder’s property in the event of a fire.

Coverage for fire insurance

Fire hazards are not only unpredictable but can also cause massive devastation financially. This makes them difficult to deal with. Whether it is for your home or your business, there is always a risk of exposure, and a fire explosion will instantly stop a thriving business.

Before buying a fire insurance policy, you need to understand why this type of commercial insurance is a wise choice. To do that, you need to know the coverage of such a policy. The wide scope of fire insurance coverage includes financial assistance against:

  • Any damage caused by a fire or explosion to a movable or immovable property.
  • Damage to property, for example, office buildings, home appliances, machinery, stock, etc. due to fire.
  • Damages caused by any natural calamity, such as explosions, water tank ruptures, etc.

* Standard T&C Apply

Types of fire insurance in India

Depending on the requirements, the following types of fire insurance policies can be purchased:

  • Specific policy

Under this policy, coverage is given to a specific asset. There is a fixed amount that is set as the sum assured. In the event of any damage or loss, compensation for it will be provided to the policyholder. *

  • Comprehensive policy

This fire insurance policy provides comprehensive coverage not only in relation to fire hazards but also against other hazards such as burglary, robbery, civil stampede, etc. *

  • Valued policy

At the time of purchasing the policy, the value of the specific property to be covered is determined. Based on the value of the property, the policy issued by the insurance company will provide the value of the said property in the event of a fire. *

  • Floating policy

This type of policy is best suited for business owners, especially those who operate an import and export business. This policy provides you with coverage to protect your items lying in various locations. It should be noted that the goods belong to the same person, and the insurance should cover all the losses related to the goods. *

* Standard T&C Apply

Steps to Filing a Fire Insurance Claim

It is easy to file a claim for fire insurance if you follow the right process. These are the steps you can take to make a claim on your fire insurance policy, including:

  • In the event of an unfortunate fire, causing, you to file a claim, notify the insurance company as soon as possible.
  • Submit a detailed account of the damaged properties as well as the equivalent estimated cost.
  • If the surveyors demand any help or additional information from you, then cooperation with them is a must.
  • Provide all possible assistance to the surveyor. It is wise to visit the damaged premises. This allows for a speedy settlement of your insurance claim.

* Standard T&C Apply

The truth is that if you are a property owner, you are always at risk, regardless of the precautions you take or the technological progress you have made. It is better to pay attention to the possibilities and to be safe instead of sorry. For specific fire dangers, the best option out of all the types of general insurance for you is fire insurance. Insurance is the subject matter of the solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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