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Fire Insurance, A Savior during Fire Damage

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Few months ago a fire broke in a residential building in Worli. Four fire-tenders and four water-tankers were rushed to the spot and the blaze was brought under control. Though damage was not much in this case such incidences if gone out of control can cause greater damage. While one can exercise control over such incidences to a limited extent, the impact of such losses can largely be reduced by insuring wisely. One such insurance which needs due consideration here is a Fire insurance.

Facts about Fire insurance

It is widely known that fire insurance covers building and contents. Building not only covers the structure but also the permanent fixtures, sanitary fittings and such other permanent fittings. Similarly garages, covered porches, canopies and even boundary walls can be covered under the fire policy. It can also cover private roads, swimming pools and foundations. Though foundations do not carry any fire risk, the same is susceptible to damage from earthquake. However all these properties need to be declared specifically while seeking insurance.

Fire insurance is

• a contract between the Insurer and the Insured is of personal nature i.e. the policy cannot be transferred in the name of any other person on account of sale of property or so except by way of inheritance.

• a location specific policy which means the property declared to be lying at any particular premises under the policy, will not be covered under the policy if the same is moved out of that premises.

• one of the policy which is still under regulatory control and hence the coverage offered and the policy wordings will essentially be uniform across the country

Risk covered under Fire insurance

Most fire insurance policies for residential buildings provide cover against damages caused by:

• Fire

• Lightening

• Explosion / implosion

• Aircraft Damage

• Riot / strike / malicious damage

• STFI