From 2009-12, fire department of Mumbai attended 13,185 fire related incident (source- ind-safety.com). Loss due to fire cannot restrict to houses and cannot be summed up to thousands. 75% of all the fire related accidents are caused due to short circuiting (source- ind-safety.com). Thus can you say that your house, factory, shop or even car is safe from fire? I’ll say ‘Hell no’ for me. And if I say that how can you reduce the chance of fire, i will end up at the Fire Insurance policy. A fire insurance policy compensates the damage and destruction caused by the fire to the house and property of insured.
Fire insurance benefits to households
- Provides for the price of damage to the building
- Indemnity against the loss to furniture like plywood, almirah, bed, sofa, TV etc.
- If fire causes the damage to electronic items like T.V., a/c, refrigerator, the value of their replacement or repairing is payable under the policy.
Fire insurance benefit to enterprise
- Covers the broken share price
- If fire causes the loss to the life of an employee, the legal compensation is also covered under a fire policy.
- Provides maintenance charges for the machine that got broken due to fire.
- The expenses incurred in treatment of the injured employees due to fire are indemnified.
Choose the policy that suits your needs
There are varieties of policies, one can choose from depending from his/ her needs. Some of the famous policies are mentioned below:
- Valued Policy: the value of property insured is hard to estimate, especially hose hold properties. The price of each and every particular of the property in Valued Policy is declared and agreed by the company and the insured. Art, jewellery, antiques are often covered under this.
- Valuable policy: under this policy, the value of property is not declared in advance rather the indemnification takes place on the market value of the property.
- Floating policy: being an owner of the warehouse, you are aware about the fluctuating value of inventory in your warehouse or godowns. Thus, a floater policy is all you need. Under this, different godowns at different locations are all covered under a single sum assured. The policy floats its coverage with the glow of goods.
- Re-instatement policy: under this, no monetary compensation is assigned rather the replacement of the damaged property takes place.
- Excess policy: excess policy is taken if the stock inside the property keeps on fluctuating. Under this policy, a minimum sum assured is defined and excess sum assured is revised after reporting excess stock.
Thus, it is established that a fire insurance cover is not only important but is flexible toy our needs to. Take up a fire insurance cover to save your property against the peril, Fire.
Your house is your greatest investment. No one will ever want t see his/house destroyed due to any reason. But certain unfortunate events are in nobody’s control. One such event is fire outbreak. A significant number of houses get destroyed due to fire by various reasons, such as short circuits and hot weather. The lost house can’t be retained but one can get payed for the losses if you have a fire insurance. Not only house but shops, factories and so on should also be insured against fire.
Nobody will want their hard earned properties and assets to burn down in a fire. Fire is a natural calamity which can occur at any time and at any place, fire can be avoided, but the loss can indeed be insured. Fire insurance covers the losses caused by fire. It is highly advisable for everyone (individuals as well as companies) to take a fire insurance policy and protect yourself against unfortunate events. It provides compensation for destroyed property, electronics, machinery, etc. There are around 7-8 types of policies which a person can choose from.
A person earns to invest his money and to make his house a place to live in with peace with his family . One can make his house resistant to weather conditions or so but one has no control over the accidents which can destroy his property . So in context to this article, one should take fire insurance to get the amount to reconstruct or renovate his property in case it meets with a disaster. The policies described in the article , are to choose from.
Some fire insurance also protects the home owner in case of damage that is done by the fire department. Things that the fire department do to your property in the event of a fire may include breaking down doors, and spraying water on all surfaces and property. So you can be covered for the actions of man and water damage as well as the damage from the fire itself.
Destruction due to fire is a physical change which cannot be bought back. But if the losses incured can be financially recovered there is nothing like it. Like life insurance policy, fire insurance policy should be made mandatory by all the institutions. A lot of hard earned money goes in the making of any house or office. We all try to safeguard our property from all evils so why not fire insurance too.