The India Risk Survey (IRS) states that fire outbreaks are the third biggest risk to business continuity and operations. The survey attributes the increased fire risk to safety regulation non-compliance and inadequate fire services. This increase in risk follows closely behind information and cyber insecurity and natural disasters. Every housing society and business should have fire insurance to minimize fire damage consequences effectively. In fact, no property is immune to natural disasters, fire aftermath can be financially catastrophic, leaving you vulnerable.
Why should housing societies consider taking a fire insurance?
Fire insurance is a crucial component of a Property Insurance policy as it provides comprehensive protection for homes and business properties such as apartment buildings, offices, and shops. This coverage safeguards the property from any damage and losses that may arise as a result of a fire. It covers the cost of repairing or replacing damaged property. It also includes additional expenses caused by the fire. Fire insurance is a valuable investment for property owners, providing financial security and peace of mind in fire emergencies.
Property Fire insurance is a type of insurance policy that has been specifically designed to provide financial protection and reimbursement for property owners whose assets have been damaged or destroyed in a fire. Fires can cause severe and devastating losses, making it expensive to repair or replace affected property, making this coverage essential.
The primary purpose of fire insurance is to provide compensation for the cost of repairing, reconstructing, or replacing the damaged property. This means that if a property owner experiences a fire, they can file a claim with their insurance provider to cover the expenses associated with restoring the property to its pre-fire condition.
What are the perils covered under the housing society fire insurance policy?
The fire insurance policy provides coverage for the following perils:
- Fire,
- Lightning,
- Implosion or explosion,
- Aircraft damage which also includes damages caused to property by any aerial device,
- Impact damage that includes damages caused to property by a vehicle, animal, or derailed train,
- Strike, riot, and malicious damage,
- Natural disasters such as Cyclone, Storm, Tempest, Typhoon, Tornado, Hurricane, Inundation, and Flood,
- Rockslide or landslide,
- Overflowing or bursting of water pipes, water tanks, and apparatus,
- Bush fire,
- Leakage from the installation of automatic sprinklers, and
- Missile testing operations.
While availing online fire insurance policy, you can check for the add-on covers and add them to the standard coverages available under the policy to enhance the coverage. Add-on covers include coverage for earthquakes, convulsions of nature, and volcanic eruptions, man-made calamities like theft, terrorism. You can additionally customize the fire insurance coverage based on your needs. However, it is important to note that the policy comes with certain coverage limitations and does not provide coverage for nuclear perils, war, pollution or contamination damage and consequential losses, etc.
In conclusion, it is important to keep in mind that fire accidents can be unexpected and cause significant destruction. By obtaining an online fire insurance policy, you can gain financial protection for your home, furniture, shares, and other business assets. In the event of fire damage, the policy serves as a safety net by providing the actual value of the property.
