Meaning, Need and Advantages of Fire Insurance

Fire insurance is the type of insurance coverage, in which an individual pays some sum of money to the company, in exchange to receive advantages for the fireplace losses.

Fire insurance provides the security for home, share, home furniture, enterprise buildings, etc, Fireplace insurance provides the price of alternative of properties and assets, which gets broken due to the fireplace incident.

Principles of fire insurance

• Indemnity: It covers loss compensation only.
• Proximate cause: The accurate reason for the fire.
• Insurable interest: Proof that the policyholder is the owner of the property/belongings

Fire insurance advantages for the homeowner:

• It provides the price of damage for the building
• If any home furnishings are damaged due to the fireplace incident, like plywood home furniture, carpets, clothes.
• It provides alternative or maintenance price for the electronic items, which is broken due to fireplace, like television, computer, air coolers.

Fire Insurance Advantages to The Enterprise:

• It covers the price of share broken due to the fire
• It provides the loss of life advantages to employee, in case of loss of life occurred due to the fireplace incident.
• It provides the alternative or maintenance price for the machines, if they get broken due to fireplace incident.
• It provides the medical expenses for the employees, if they get injured due to the fireplace incident.

Fire accidents are very much unexpected but are heavily destructive. Hence, having a fireplace insurance is very much essential.

Covered under Fire Insurance

Factory:

• Electrical installations like Machinery
• Stocks: Finished good, semi-finished goods, and Raw material
• Other types of equipment

Home insurance: All personal belongings except expensive and precious items

Shops and hotels: furniture and stock

Not covered under fire insurance

• Earthquake
• War
• Terrorist
• Caused by the Third-party: For example, your factory is on the ground floor and the fire was caused by someone of the first floor