The start neither the eventual consequence of a fire can be predicted or known; because of which it is difficult to be prepared before hand for a fire or its consequences; and the only thing a person can do is to get protected to a certain limit by getting financial protection before hand through an insurance policy.
According to a report accidental fires caused 6% of all unnatural deaths in India; third highest after car accidents and drowning. Also it was stated that as many as 121,325 accidental fires injured 13,721 people between 2010 and 2014. To counter such unfortunate events and the damages caused; it is a good idea to be insured by an appropriate fire insurance policy; which truly acts as a savior during such a mishap.
Why is it important?
Fire insurance is coverage where the individual will pay some premium to an insurance company in exchange of which the company pays for damages and losses in case of a fire. It is a good way to ensure that in such a situation the individual and their family will not be homeless.
It is essential to protect one’s property from a fire, especially in case of older properties which display more possibility of catching a fire. Over time electrical wiring gets worn out; or there is a leakage in plumbing and so on which can easily start a fire. Moreover even modern facilities though much less likely; do at times have a chance of having the misfortune of such an event.
A commercial property catching fire is bad enough and to add to it not having a fire insurance or office Insurance policy; can worsen the situation; making it extremely difficult for the individual to sustain the damages and losses. Hence fire insurance is the biggest boon one can have if someone has the misfortune to be exposed to such an event.
Benefits of insurance during fire damage
Not being insured against a fire makes it very difficult to recover both emotionally and financially in event of such a mishap. A person may end up paying for a home that doesn’t exist along with losing all their possessions, with very less money left to replace all the possessions.
By law very home owner needs to have a certain amount of fire insurance; however this may not be able to sufficiently cover all losses. Hence home owners and especially business owners need to have a cover which protects them as much as possible. Including these few variables can help benefit any property owner.
- Replace Contents – this helps cover for replacement of certain value of home and business contents
- Temporary Accommodation – fire insurance will protect one from loss of possessions home and business; hence temporary accommodation cover can help provide for the insured to move to a temporary place to stay until the original place is restored again
- Reconstruct the Damage – as a fire will demolish the structure of the home or business, the policy insures the person to be able to remake or replace portions which are damaged
Benefits for the homeowner
- The policy pays for the damage of the building
- Provides replace contents to replace damages to any home furnishings including furniture, carpets, clothes, etc.
- Provides alternative for electronic items which may be broken including television sets, computers, etc.
Benefits for the enterprise
- Provides for the price of share broken in case of a fire
- In case of loss of life at workplace; it provides life advantage to employees
- If machine are broken; the policy provides the alternative or maintenance price for the machines
- In case of injury the policy provides for medical expenses for the employees
What to look for in a fire insurance policy?
Finally, to get the most out of a fire insurance as described above one needs to get the right type of policy and cover. Hence to prevent any sort of future misunderstandings one must carefully read the entire contract; to not be disappointed eventually with the cover received.
Most policies provide for repair or replacement of the property, however the cover depends on various variables like the amount of damage done; cost of the property, any changes done to the property or extensions can raise the price of the property and hence the compensation to be received.
Depending on the persons need some policies include the contents of the property, and one can also add jewelries to the fire insurance. Getting a temporary accommodation cover will increase the cost of the policy, but could be essential for those whom might not have the financials for paying these additional expenses in the future. One can also decrease the cost of the policy by including some safety measures.
There are many other variables and exclusions both that can be added or ignored depending on the individuals needs. It would be best to consult with a fire insurance broker before taking the fire insurance; which can help the individual tide more easily through such an emotionally and financially difficult situation.
