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Keep your home fire proof!

Keep your home fire proof!

Keep your home fire proof!

With the rapid urbanization and faster development, fire accidents have become a common catastrophe. One of the best ways to secure one’s future is through fire insurances. Fire insurance covers building and its contents. However, all these properties need to be declared specifically while seeking insurance. There are certain add-ons to the property that are highly useful in case of damages.

Fire insurance cover

1. Building not only covers the structure but also the permanent fixtures, sanitary fittings and such other permanent fittings.

2. Garages, covered porches, canopies and even boundary walls can be covered under the fire policy.

3. Private roads, swimming pools and foundations.

4. Though foundations do not carry any fire risk, the same is susceptible to damage from earthquake.

Types of Fire Insurance Policy

There are different types of Fire Insurance Policies, one can opt for according to the needs.

Specific Policy: The insurance company is liable to pay a sum, which may be less than the property's real value, in this type of policy. The insured is called to bear a part of the loss, as the actual value of the property is not considered in deciding the amount of indemnity. This is a case of under-insurance of property.

Comprehensive Policy: Also known as the "all-in-one" policy, this policy makes up for the loss arising out of fire, burglary, theft and third party risks. The policyholder also gets paid for loss of profits incurred, due to fire, till the time the business remains shut.

Valued Policy: The value of the commodity is already set and actual loss is not taken into consideration in this policy. The policy follows a standard contract of indemnity, wherein the policyholder gets paid a specific amount of indemnity, without considering the actual loss.

Floating Policy: This type of policy is subject to an average clause and the extent of coverage expands to different properties, belonging to the policyholder, under the same contract and one premium. The floating policy also provides protection of goods kept at two different stores.

Replacement or Re-instatement Policy: Here the insurance company instead of paying the policyholder the amount of indemnity in cash, replaces the damaged property/commodity with a new one.

Last Updated: Fri Dec 30 2011

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