Fire Insurance
Fire insurance is a part of the property insurance which helps in covering the damage and losses caused due to fire. Since fire insurance is a part of the property insurance, some part of the claim is set for the fire damage and loss coverage and rest is divided according to other factors which can cause damage to the property. As there is a set rate for the fire insurance within the property insurance, the actual cost of the damage might be higher than the claim received; therefore homeowners and building owners are purchasing the fire insurance policy separately to cover the actual cost of the building including the appliance present within the building.
Although fire insurance includes all sorts of factors which can cause fire like a power outage, electrical wiring issue and more, but other manmade factors like war, the nuclear bomb and other factors on similar line are not included in the terms and condition of the fire insurance policy.
How does fire insurance work?
Fire insurance helps in covering all the damages caused due to fire, which includes the cost of the appliance present within the property. It also includes the wiring damage and the water damage which occurred post the fire and further ruined the property, this factor is also considered as additional coverage for the loss as it occurred post the fire was controlled.
Fire insurance policy helps in providing payment to the homeowner or the building owner, as long as they can provide the details of the appliance which got damaged in the fire along with other belongings. Fire insurance is also considered as the easiest insurance policy which can be extended when the policy is about to be expired. Other policies like life insurance and health insurance policies don’t have this feature available in the terms and conditions.
The fire caused due to wire shortage, electricity, explosion due to gas, lighting and due to other natural disasters are considered as a valid factor for claiming the fire insurance coverage. As long as intentional fire or other manmade factors are not the reason for the fire, the fire insurance can be claimed immediately post the inspection and investigation.
It is common that people who stay in areas where there is always heat or witness wildfires, they tend to opt for the best fire insurance policy available as it helps in covering everything they have lost in the fire. Therefore, fire insurance is also being bought separately from the property insurance policy.
