How is Proximate Cause Determined in a Fire Insurance Policy?

Proximate Cause is an important principle of insurance, which helps in deciding how the loss or damage happen and whether it is the result of an insured peril or not. The important point to consider here is that proximate cause is the only nearest cause and not the remote cause. It mainly revolves around the […]

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Who Should Buy Fire Insurance Policy?

Any individual, firm, organization, or institution can apply for the fire insurance policy. Given below is a list of people or entities who should buy a fire insurance policy: Owners of buildings and the owners of the content inside the building which includes artifacts, furniture, etc. Educational Institutions Shopkeepers Industrial or Manufacturing firms Godown keepers […]

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Which Perils Are Not Covered By Fire Insurance Policies?

The fire insurance policies do not cover perils mentioned below: Spontaneous combustion Burning of property by order of any Public Authority Property undergoing any heating or drying process Explosion of boilers (other than domestic boilers) Total or partial cessation of work Permanent or temporary dispossession by order of Government Normal cracking or settlement or bedding […]

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How Do the Insurance Principles Apply to Fire Insurance Contracts?

A fire insurance policy offers protection against losses or damages that may arise due to a fire accident. Like in the case of other insurance contracts, insurance principles are applicable to fire insurance contracts. Here are some ways through which insurance principles apply to fire insurance contracts  – 1. The complete disclosure of information – […]

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What are the 12 perils of standard fire insurance policy?

A fire insurance policy is a contract between the policyholder and the insurance company to indemnify the insured for the financial losses suffered due to the destruction or the damage of the property/goods caused by fire. All the movable and the immovable properties like buildings, plant & machinery, equipments & accessories, stocks, and other contents […]

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Which Assets are Not Covered by The Fire Insurance Policies?

Any individual with an insurable interest in a property should purchase a fire insurance policy. The policy is a comprehensive cover that provides for losses incurred due to a fire. Any individual who owns a property, plant, manufacturing unit, stocks, bank and financial institution, etc. should purchase a fire insurance policy. The premium for the […]

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What are the kinds of fire insurance policies for a start-up?

If you are a start-up, it is essential to buy a fire insurance policy which plays an imperative role by covering your business against various losses or damages. There are various factors which you should consider in order to choose the right kind of fire insurance policy. Here are the important parameters which should be […]

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What are the physical hazards in fire insurance?

The insurance industry uses the terms like risks, perils and hazards to differentiate between various conditions of insurance. The possibility of loss is denoted by the term ‘risk’, whereas the term ‘peril’ denotes the cause of the loss. The condition that increases the possibility of the loss is denoted by the term ‘hazard’. Physical hazards […]

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How is Indemnity Estimated in Fire Insurance?

The principle of indemnity ensures that there is no profit to the insured after the claim, and he/she only retains his/her financial position as it was before the loss. Estimation of indemnity will consider all the ways and methods to ensure this application in every insurance contract including fire Insurance. Indemnity is estimated in Fire […]

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