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.