Quick Tips on Fire Insurance
Quick Tips on Fire Insurance 12th Feb 2020
Fire and related events can cause very big losses, and they have become one of the biggest causes of losses in recent times. The damage due to fire can include non-movable assets like homes and buildings as well as movable assets like goods. To ensure you are protected against any unforeseen damage of your property by fire or any fire-related event, you can buy fire insurance for your property from any of the fire insurance companies in India. Fire insurance involves many things and some things must be taken care of while buying fire insurance or renewing your insurance so that you need to pay a lesser premium as well as while filing claims so that you get the best deals.
Things covered under fire insurance: -
Things which fire insurance companies in India do not cover: -
What should be the policy amount of your fire insurance?
In most cases, the total sum for which you are buying the fire insurance should be equal to the total cost needed to rebuild or reinstate the property and the professional fees involved along with the charges for the removal of debris.
What is the difference between Replacement Value Policy and Reinstatement Value Policy for Fixed Assets?
In Replacement Value Policy, the insurance company pays the cost of replacing the complete asset that has been damaged or lost due to fire and related events whereas in case of a Reinstatement Value Policy; the insurance company pays the cost to replace the damaged property to its original condition it was in before the loss due to fire. While Replacement Value Policy can apply to other assets, the Reinstatement Value Policy is only applicable to buildings and no other assets.
When buying a fire insurance policy from fire insurance companies in India, you must consider the following things:
What information you should get from the fire insurance company while buying the policy?
What things are considered to calculate the premium?
The insurer uses many different kinds of data to come up with a final number which you need to pay as premium annually:
How to claim if your asset is damaged?
You need to immediately contact your insurer as soon as your insured property is damaged. The insurer may appoint an independent loss adjuster to take care of your claim, and you will be required to fill a form to start the claim process. The insurer will undertake proper investigation and will then accept the claim if everything is fine.