What Is Fire Insurance?
The term fire insurance refers to a form of property insurance that covers damage and losses caused by fire. Most policies come with some form of fire protection, but homeowners may be able to purchase additional coverage in case their property is lost or damaged because of fire.
Standard Fire Policy Covers loss and/or damage by fire and/or Lightning. Explosion in Boiler, economizer is also covered for buildings of domestic use.
FIRE AND ALLIED PERILS
The perils covered under the policy are Fire, Lightning, Earthquake, Storm, Tempest, Flood, Bursting & Overflowing of Water Tanks and Apparatus, Impact Damage, Aircraft Damage, Riot & Strike damage, Malicious Damage and Explosion.
INDUSTRIAL ALL RISKS
Industrial All Risks Insurance is a wider cover than Traditional “Standard Fire and Allied Peril Insurance Policy”. It is an all risks policy covering a wider range of perils such as Fire and Allied Perils, Burglary, Accidental Damage, Explosion, Breakdown of Machinery (MBD) as well as Business Interruption (BI), etc. Risks for MBD & BI are an extension of the IAR Policy.
What is the benefit of fire insurance?
Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.
How does fire insurance work?
Fire insurance is a legal contract between an insurance company and the policyholder which guarantees that any loss or damages caused to the policyholder’s property in a fire will be paid by the insurance company. Fire insurance provides coverage against incidents of accidental fire, lightning, explosion, etc.