FIRE INSURANCE

You might have heard that a place caught fire and everything was destroyed. Unfortunately, this thing can happen to anyone and anywhere.

Ever wondered what will happen if your house, factory, office or any premises catch a fire? Who will pay those expenses, who is going to pay for re-constructing those assets? Even if you have a lot of money you might not want your assets to burn out. For this we have fire insurance which is going to help you during these difficult times.

Under fire insurance, you can cover the financial losses which you have suffered due to destruction of fire or damage to your property and goods, caused by a fire during a specific period. Fire insurance include building, furniture- fixture, machinery, stocks as desired in the proposal.

Things to consider before buying fire insurance

1. RIGHT COVERAGE - since the purpose of buying fire insurance is to cover your expenses at the time of loss, it is very important for you to choose the policy with right sum assured. To ensure you buy the right coverage make the list of things you want to insure.

2. DEDUCTIBLES - This is the amount you will have to pay compulsorily in case of a claim. You should only agree to the amount you can actually afford paying in case of a loss. Saying yes to deductibles can reduce the premium amount you need to pay.

3. ADOPT MEASURES - even before buying the fire insurance, you need to adopt safety measures to avoid fire. just because you bought a fire insurance does not mean you can act carelessly. Installing smoke detectors, fire extinguishers, etc. can help you lower your premiums.

4. COMPARE POLICIES - this is the most important measure. You should always compare the different insurance quotes available so that you can buy the best insurance available in the market and do not have to pay excessive premium.

5. EXCLUSIONS - – you should always check what all is not included in your policy and get an add-on if you need to

BENEFITS OF FIRE INSURANCE

Mr. Rajesh owns a traditional showroom in the commercial area of Mumbai. He has all the stocks of famous designer’s clothes. On the day of Diwali, his shop caught fire and since he wasn’t working on that day everything was destroyed even the stock which he had to deliver to a client the very next day. His store was worth more than 3 crores and had a stock of 2 crores. Luckily, 3-years ago when he bought the store, he bought comprehensive fire insurance because his friend advised him. He thought it was of no use but now he is so grateful that he bought this policy. He approached his insurer who came to the scene and checked the loss occurred. Once done, he was able to get the claim amount within a few weeks. Since the fire occurred because of the insured peril, he was able to recover losses. This policy helped Rajesh to overcome a huge financial loss and re-start his business.

UNDER THIS POLICY FOLLOWING PERIL ARE COVERED

  1. FIRE
  2. MISSILE TESTING OPERATION
  3. LIGHTENING
  4. BUSH FIRE
  5. AIRCRAFT DAMAGE
  6. EXPLOSION / IMPLOSION
  7. RIOTS, STRIKE / MALICIOUS DAMAGE
  8. SUBSIDENCE AND LAND SLIDE INCLUDING ROCK SLIDE
  9. BURSTING AND /OR OVERFLOWING OF WATER TANKS, APPARATUS AND PIPES
  10. IMPACT DAMAGE
  11. LEAKAGE FROM AUTOMATIC SPRINKLE INSTALLATION
  12. EARTHQUAKE
  13. STORM / CYCLONE / TYPHOON / TEMPEST / HURRICANE / TORNADO / FLOOD AND INUNDATION
  14. TERRORISM

HOW TO MAKE A CLAIM UNDER FIRE INSURANCE?

Ensure before claim intimation there should not be any breach of law.

  1. Immediate Intimation to Insurance Company.
  2. In case of Fire immediate intimation to Police and Fire Brigade.
  3. In case of Flood/Storm immediate intimation to Local Authority.
  4. Do not start any repair work unless surveyor visit your location where loss has occurred.
  5. Salvage to be disposed only after consulting the Surveyor.
  6. Insurance Policy Copy with Endorsement If Any.
  7. Claim Form Duly Filled In & Signed.
  8. Description of Occurrence in Detail.
  9. News Paper Cuttings, If Any.
  10. In case of Loss to Stock, Stock Statement.
  11. If stock Hypothecated to Bank then Certified stock statement from Bank.
  12. Purchase and Sales Registered last three years.
  13. Last three years Balance Sheet and Profit and Loss Account.
  14. Fire Brigade Report.
  15. Police F.I.R. & Police Panchnama.
  16. Pan Card Copy.
  17. Bank Account No. Bank Name along with cancelled cheque.
  18. Certificate of Society Registration.
  19. Authority Letter for your representative.
  20. Set of Photographs for loss.
  21. Detail Estimate of Loss Giving Break Up of Labor & Material Charges.
  22. Original Repair Bills.
  23. Payments received, receipt from contractor in Original.
  24. Salvage Value of Damaged Items.
  25. Disposal certificate from Local Authority.
  26. Layout of Premises.
  27. Set of Photographs of Repair Work Completed with Building Name Appearing.
  28. Metrological Department report for confirming the flood/storm occurs in area where your location has suffered loss.
  29. Any other additional papers as and when required by Insurance Company.

Why Buy Fire Insurance from SANGHAVI INSURANCE AND FINANCE CONSULTANT?

  • We continuously try to fulfil our client’s requirements, by providing and advising them about wide range of plans and riders available in the market.
  • We know that a financial crisis or an emergency can arise anytime and thus we are here to help you 24/7.
  • We are the one who will go through the internal terms and conditions of the policy and make sure that they are favorable to our clients
  • Our insurance claims are settled with utmost ease and transparency
  • .We continuously update the client on claim status at every level of claim.

FAQs on Fire Insurance

1 .Who needs Fire Insurance?
Ans:

Those who need fire insurance are: -
    ∙Home Owners 
    ∙Renters
    ∙Small Business owners
    ∙Medium business owners 
    ∙Large enterprises


2 .Why do we need fire insurance?
Ans:

We need fire insurance because a fire outbreak ranks as 3rd biggest risk to business continuity and operations  and the official report such as ADSI shows that residential buildings are most prone to fire outbreaks.


3 .Where do we get Fire Insurance?
Ans:

We get fire insurance from digital and also from physical stores of the insurance company.


4 .What is covered in fire insurance?
Ans:

Fire Insurance policy prepared by go digit are: -
    ∙Explosion and aircraft damage to the building etc.
    ∙Storms which damages your house
    ∙Floods etc.


5 .Does fire insurance also offer coverage for jewelry, ornaments and artworks?
Ans:

Usually fire insurance does not cover these items, unless discussed with the insurer while buying the insurance. However, on special request these conditions can additionally be applied to the policy.


6 .Can I Cancel my policy in the middle of policy tenure?
Ans:

Yes, anyone can cancel the policy during the tenure of the policy.


7 .When the policy is canceled midway will the amount be refunded?
Ans:

Insurance company will give you a pro-rated refund of premium. If there is any retention of premium or balance for a short period, it will be refunded.


8 .How to handle loss in case of fire?
Ans:

Despite all predictions, people cannot evade the calamity. First thing to do is inform the insurer, cooperate with the supervisor at the time of loss assessment. You can also take photos of loss if the supervisor takes a lot of time to inspect and move all unaffected assets to a safe place. Fill the claim form and submit it along with the document supporting the claim. After the repair or replacement of damages, submit all the bills to the insurer.


9 .What are the add-on coverage in fire insurance?
Ans:

Add-on coverages are: -
    ∙Forest fire
    ∙Earthquakes
    ∙Damages to stock due to change of temperature.


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