Fire-related accidents are in the headlines ever so often. In a recent incident, a fire led to the death of six people and severely damaged the building of Excel Greentech, Noida.
Owning a business, one is always susceptible to risks. A fire eruption doesn’t only cause massive financial damage, but it is also really daunting to deal with the aftermath. Here’s why having Fire Insurance is a wise decision.
What is Fire Insurance Policy?
Insurance that offers protection of your property against fire-related damages is called ‘Fire Insurance’. However, this insurance is completely different from property insurance where the inclusion list includes the expenses incurred during reconstruction, repair or replacement of not only the insured property, but also nearby affected structures if any. Other coverages include damage to the personal property other than the insured and expenses of those who are affected due to the property damage.
Types of Fire Insurance Policy
A specific policy is that policy under which the liability of the insurer is limited to a specified sum which is less than the value of property.
A valued policy is that policy under which the insurer agrees to pay a specific sum irrespective of the actual loss suffered. A valued policy is not a contract of indemnity.
The insurer undertakes to compensate the employers against the losses suffered by him due to the employees. The losses may be due to fraud, dishonesty and misappropriation of funds, goods or damages to property caused by the employees.
Public Liability Insurance
In such policies the insurer undertakes to pay no the value of the property lost, but the cost of replacement of the property destroyed or damaged. The insurer may retain an option to replace the property instead of paying cash.
When a policy covers property situated in different places it is called a floating policy. Floating policies are always subject to an average clause.
Documents Needed to File Fire Insurance
Below are the common documents for all claims related to fire insurance:
- An authorised copy of the policy along with schedule and clauses
- Duly filled claim form
- Newspaper proof If the incident is published in the media channels
- Previous claim record, if any
- FIR copy
- Fire brigade report
- Forensic report wherever is needed
- Final investigation report