Fire Insurance

Fire Insurance, just like any other insurance, is a legal contract between insured and insurer against the loss/damage incurred by accidental fire. This insurance provides protection to goods and the equipment of a property i.e., business or home against any loss from fire. Most of the insurance companies offer fire insurance as an add-on coverage with property insurance. But, purchasing fire insurance will help to cover the cost of replacement, repair and reconstruction of your property due to any fire incident.

The policy helps to compensate for any loss due to fire or a number of sources, borne by the policyholder. Property fire insurance can cover you against damage caused by fire brought about by a number of ways such as: a short circuit, an explosion, even lightning and natural disasters. A burst and overflowing water tank or pipe can also be covered by this fire insurance policy. If the property is identified as a total loss, the insurance company may actually reimburse the property’s current market value. The reimbursement may be done in terms of replacement, repair or reinstallation as per the policy document.

Fires are unpredictable! So, anyone with a property should ensure that their home or business is protected from damages and losses that could occur due to an unforeseen fire. Fire outbreak is ranked as the 3rd biggest risk to business continuity, and businesses affected by fire see a 25 to 30 % decline in the overall footfall. Fire insurance provides protection against damages to the property incurred due to fire eruption. A fire insurance also covers damages to the property such as your office buildings, stocks, furniture, machinery etc. In addition to fire related perils, it also protects from damages caused due to any natural calamity, theft, bursting of water tank, etc.

Following types of fire insurance can be availed, depending upon the requirement and necessities of the policy holder.

• Specific Policy: Under this policy, a specified sum insured is determined for your property and in case of any loss, a compensation is provided within the specified or pre-determined amount.
• Comprehensive Policy: A comprehensive policy, as the name suggests, along with coverages against fire-related perils it also covers for other perils such as robbery, burglary, vandalism, etc.
• Valued Policy: A specific value of the property is determined at the policy initiation. If there is a loss or damage due to fire, the insurer will pay the decided value to the policyholder.
• Floating Policy:This policy provides coverages for the goods situated at various places. So, this policy serves good for owners of businesses related to import and export. Here, for the policy to hold true, all the goods secured need to belong to the same owner under one sum assured and one premium covering all the perils.
• Consequential Loss Policy: This policy provides coverage for consequential loss or loss of profits. A fire-outbreak in a workplace like in a factory will disrupt the workplace and derail the operation. Hence the production may go down but the fixed expenses continue at the same price. So, this policy will pay for those consequential losses, by looking at the loss of sales insurers calculate the loss of profit/gain in this case.
• Replacement Policy: Under this policy, the insurance company provides compensation weighing the property’s market value. After considering the depreciating value of the property, the amount that is to be compensated is calculated.

Following are the inclusion under online fire insurance policy:

• Loss/damage due to Fire
• Loss/damage due to Explosion
• Loss/damage due to Implosion
• Loss/damage due to Lightning
• Loss/damage due to Natural Calamities
• Loss or damage caused by Bursting or overflowing of water tanks, apparatus and pipes
• Loss/damage due to Terrorist activities, riots, strikes
• Loss/damage due to Aircraft Crash
• Loss/damage due to Theft or Robbery

Note:This is just an indicative list, your policy copy will have details of the inclusions.

Below mentioned are few exclusions of fire insurance policy:

• Damages due to war invasion, operations, civil war, commotion, mutiny warlike situations, etc.
• Damages due to Ionizing radiation.
• Damages due to pollution and contamination.
• Damages caused due to nuclear perils, nuclear waste or radioactivity.
• Damages done deliberate, willful or intentional are not covered.
• Damages to any of the electrical machines, short circuit, apparatus, leakage of electricity are not covered under this policy.

Note:This is just an indicative list, your policy copy will have details of the exclusions.

Following are the documents required to file a claim under property fire insurance policy

• Policy copy
• Duly filled claim form
• Previous claim record
• Report by fire brigade
• Photographs of accident
• If accident is published a proof of that, newspaper cutting

Following are the steps to file for a fire insurance claim:

• Inform the insurance company and Secure Now at the earliest. Our experts will help you to fast track your claim process.
• Our expert will help and guide you in arranging the required documents like policy copy, claim form etc.
• Prepare a detailed account of the losses and collect proof (photographs) of the damage.
• A surveyor will be appointed by the insurance company.
• You should help the surveyor in the examination of damaged property as it will help in a fast settlement of your claim process.