Underinsurance refers to inadequate insurance coverage of the policyholder. In this article, we’ll get to know how does underinsurance impact fire insurance claim settlement. If a policyholder is underinsured, it will result in economic losses for him/her in the event of a claim far exceeding any premium savings that might have resulted from underinsurance. Therefore property […]
How does fire insurance claim settlement vary between reinstatement clause and market value policies?
We have discussed below the two bases of claim settlement that can be opted in a fire insurance claim settlement : Market value basis – the default one and Re-instatement value basis To explain how does the claim settlement works in the above cases under Fire Insurance, let us start with an example […]
Designation of property is the most important clause in a fire insurance policy. As per fire insurance policy wordings, designation of property clause is defined as – For the purpose of determining, where necessary, the item under which any property is insured, the insurers agree to accept the designation under which the property has been entered in […]
A fire insurance policy covers all properties— moveable or immovable, against various perils. The fire insurance policy has been renamed as the standard fire and special perils policy. So, in this article, we must discuss what is covered under a Fire Insurance Policy. Some of the properties covered under a fire insurance policy are: Building: […]
If a misfortune befalls, take the following steps immediately: Inform losses or damages immediately to the insurance company so that a competent surveyor can come to ascertain total losses Give the estimated figures of damages Give full corporation to surveyors by giving them all the necessary documents for assessment of the loss Corporate with the […]
Published in Economic times on Apr 29 2016, Written by Kapil Mehta A fire entails not just tremendous physical and financial damage, but also a fair amount of emotional and mental trauma. Nobody expects a fire, so it’s important to be prepared for how to deal with one, if it ever does occur. The aftermath […]
The chemical industry in India is the third largest producer in Asia and is expected to double its share in the global chemical market by 2021. While chemical manufacturers are expanding due to growth in automotive, textile and construction industry, the risk associated with chemical industry is also growing. Use of new chemicals has increased […]
A fire insurance policy covers the loss or the damage caused to the property due to fire. A standard policy provides the insured, the coverage against the perils as mentioned in his policy documents. Some of the perils are fire, lightning, aircraft damage, storm, typhoon, hurricane, etc. So let’s know what is earthquake extension clause […]
An escalation clause or phrase in a fire insurance contract effectively allows for an increase in the sum insured to cover any unexpected costs which may arise from fluctuations. It simply means, that should inflation increase the price of items, for instance, these costs will be covered under a fire insurance policy as well. While […]
Are losses arising out of theft and burglary covered under the Standard Fire and Special Perils policy?
If a loss arises out of theft and burglary, the standard fire and special insurance policy usually exclude it, unless stated otherwise. Usually, most of the fire insurance companies think that burglary, theft or housebreaking are not linked with the fire accident, and therefore, the insurer prefers to deny any claim which arises out of […]