What is fire insurance and its types?

What is fire insurance and its types?

Fire insurance helps to cover the risk of loss of property caused by fire accidentally or unintentionally. A fire insurance policy covers the loss that the insurer may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period and up to agreed amount.

What is meant by fire insurance?

fire insurance, provision against losses caused by fire, lightning, and the removal of property from premises endangered by fire. The insurer agrees, for a fee, to reimburse the insured in the event of such an occurrence.

What is fire insurance in Wikipedia?

Fire insurance is a legal contract between an insurance company and the policyholder which guarantees that any loss or damages caused to the policyholder’s property in a fire will be paid by the insurance company. Fire insurance provides coverage against incidents of accidental fire, lightning, explosion, etc.

What is the example of fire insurance?

For example, if a fire insurance policy is taken with a specific value of Rs. 2 lakh, then in case the loss due to fire is worth Rs. 3 lakh, the amount payable is Rs. 2 lakh.

What are the features of fire insurance?

Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.

What are the principles of fire insurance?

The principle of Good Faith in Fire Insurance The highest level of good faith in fire insurance has two components: first, the disclosure of relevant evidence, and second, the protection of the insured property. Both the insurer and the insured must have clear details on the subject matter of the injury.

What are uses of fire insurance?

Uses of Fire Insurance Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.

What is the importance of fire insurance?

Fire insurance provides protection against unforeseen damage to or destruction of moveable and immovable property due to fire and other perils. 3. Other perils covered include lightning, explosions, malicious damage, natural disasters, impact damage, subsidence and landslide, and bursting of water tanks.

How many types of fire insurance are there?

Fire insurance policies are classified into 15 types based on insurance hazards, insured risk, business type, policy rules. Insurance companies provide 15 different fire insurance policies to cover the losses caused by fire for businesses.

What are the 3 elements of fire insurance?

Characteristics of Fire Insurance

• Insurable Interest. Fire insurance demands the insured to have an insurable interest in the property to be insured.
• Utmost Faith.
• Contract of Indemnity.
• Personal Insurance Contract.
• Personal Right.
• Direct Cause of Loss.
• Description of Property.

What are the causes of fire insurance?

Fire insurance is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period.

What are 12 perils of fire insurance?

Perils Covered: Aircraft damage. Riot, Strike, Malicious damage (RSMD Perils) Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado.

What are characteristics of fire insurance?

Characteristics of Fire Insurance Contract It is a contract of indemnity. The assured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject-matter is insured. It is a contract of uberrimae fidei.

Why do we need fire insurance?

A fire insurance coverage not only covers the loss or damage to the building but also helps in replacing the goods that caught fire. The insurer also provides for the maintenance charges for those damaged machines and equipment during the fire.

What are the advantages and disadvantages of fire insurance?

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.

What is importance of fire insurance?

Fire insurance provides protection against unforeseen damage to or destruction of moveable and immovable property due to fire and other perils. 3. Other perils covered include lightning, explosions, malicious damage, natural disasters, impact damage, subsidence and landslide, and bursting of water tanks. 4.