Fire accidents and mishaps are not unheard of. Even though no one wants such calamities, yet, you can never predict about when these might strike. Thus, it’s always advisable to have a policy cover in place, which will provide security for home, stock, and furniture, business buildings, which gets damaged or spoilt because of the fire accident. For this type of policy, the individual pays some amount of money to the company, in exchange to receive benefits for the losses.
Fire insurance provides the benefits in many ways. It provides the cost of damage for the building. It provides the replacement cost, if any furniture is destroyed as a result of the fire accident. It also covers the replacement or repair cost for the electronic items, like television, computer, air coolers, which is damaged. In case, you have a business, then, it provides assistance in various ways. It covers the cost of stock damaged. It provides benefits to employee, in case of death occurred due to the accident. It provides the replacement or repair cost for the machines, if they get damaged. It provides the medical expenses for the employees, if they get injured due to the unfortunate incident.
Along with having an idea about the benefit fire insurance offers, it is also important that you have an overview about different type of policies available. The first type is the ‘comprehensive policy’. It is also known as ‘all in one’ policy as it covers various risks and also covers loss of profits during the time the business remains closed because of the fire. Then, there is specific policy, which covers the loss up to a specific amount, which is below the actual value of the property. The actual value of the property is not taken into concern while determining the sum of cover. Remember, such a policy is not subject to ‘average clause’. It is a section by which the insured is called upon to put up with a part of the loss himself. The key object of the clause is to check under-insurance, to support full insurance and to impress upon the property owners to get their possessions precisely valued before the insurance.
There is also valued policy. If you buy this, then you can recover a set amount agreed to at the time the policy is taken. In the event of loss, only the fixed amount is payable, irrespective of the actual amount of loss. You can also go for floating policy, which covers the loss by fire caused to property belonging to the same person, but situated at different places under a single sum and for one premium. Such a policy might cover goods lying in two warehouses at two different locations. However, remember that this policy is always subject to ‘average clause’.
The fact is that any fire accident is unexpected, but can have devastating impact not only on your business or home, but also on your life. And, having fire insurance can help you take a step closer to a safer future.
