What is Fire Insurance?
A fire insurance policy is a type of property insurance policy, which covers the damages and losses caused to a residential or business property due to fire. This policy enables the policyholder to claim compensation for costs incurred towards repairing, replacing or reconstructing a property damaged in a fire. Since it is not possible to predict the estimation of losses due to a fire, insurance providers issue fixed value compensations when policyholders file claims. Therefore, you get the maximum sum assured when you file your claim for fire insurance.
What is included in fire insurance?
Having explained what is fire policy, let’s understand the type of coverage you can get when you file an insurance claim, along with its inclusions.
A fire insurance policy covers you against the losses arising due to an accidental fire, as per the policy’s terms and conditions. The coverage is limited to the value of the policy and not as per the extent of damage sustained by the policyholder. Typically, you can get coverage against:
The actual loss of goods caused by the fire
The loss of any adjacent property or building caused due to the fire in the insured property
Additional everyday expenses affected due to the damage endured by your property
Compensation amount paid to the firefighters
The fire triggered due to electricity issues
Damage caused due to overflowing pipes or water tanks.
I have a client whose backpack manufacturing factory had burned down to the ground completely. The client had almost come down to the verge of bankruptcy as the claim amount was a huge 67 lakhs. The Insurance Company was taking a long time to settle the claim but because of our constant intervention the claim got settled and the client sailed the through those bad times smoothly. I have Insured over 750 crores worth of assets for my clients and have aa total accumalated premium of about 50 lakhs.
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Insurance and investment advisory by Manish Busa.