With more and more people opting for a luxurious lifestyle, as a result becoming
gadget freaks, the risk of facing a crisis situation i.e. fire accidents have
increased considerably. In such circumstances, the best bet would be to get your
house and commodities secured and insured. One such policy is the home fire
insurance policy, also called Standard Fire and Special Perils Policy, the
bulwark against such potential perils. It offers protection against the risk of
loss or damage due to fire or special perils. The policy pays for the actual
cost of repairs, replacement or setting up of the item lost or damaged. However,
claim settlements are subject to the market value of the property damaged, at
the time of loss, upon an overall limit of the sum insured opted. If the
individual value of assets is not furnished, the value of each property is
considered as not more than 5% of the total sum insured. Know more about the
types of fire insurance policy, the documents required and what is covered in
these policies.
Types of Fire Insurance Policy
Specific Policy
In this type of policy, the insurance company is liable to pay a sum, which may
be less than the property's real value. The insured is called to bear a part of
the loss, as the actual value of the property is not considered in deciding the
amount of indemnity. This is a case of under-insurance of property.
Comprehensive Policy
Known as "all-in-one" policy, the insurance company indemnifies the policyholder
for loss arising out of fire, burglary, theft and third party risks. In this
type of policy, the policyholder also gets paid for loss of profits incurred,
due to fire, till the time the business remains shut.
Valued Policy
In this type of policy, the value of the commodity is already set and actual
loss is not taken into consideration. The policy follows a standard contract of
indemnity, wherein the policyholder gets paid a specific amount of indemnity,
without considering the actual loss.
Floating Policy
This type of policy is subject to average clause and the extent of coverage
expands to different properties, belonging to the policyholder, under the same
contract and one premium. The floating policy also provides protection of goods
kept at two different stores.
Replacement or Re-instatement Policy
As per replacement or re-instatement policy, the insurance company instead of
paying the policyholder the amount of indemnity in cash, replaces the damaged
property/commodity with a new one.
Documents Required for Fire Insurance Claim
* True copy of the policy along with schedule.
* Report of fire brigade.
* Claim Form
* Photographs
* Past claims experience
What is Covered in Fire & Special Perils Policy?
* Accidental fires, lightning, explosion and implosion due to pressure
vessels(used for domestic purposes)
* By rioting mob, striking workers, malicious acts by third parties and damage
by terrorists
* Impact damage by any rail/road vehicle or animal by direct contact.
* Commodities damaged by water used for extinguishing fire.
* Loss\damage caused by pulling down of adjacent buildings by the fire brigade
to prevent the flames from progressing.
* Breakage of commodities in the process of their removal from the premises
where fire is intense.
* Aircraft and other aerial and and/or space devices and/or articles dropped
therefrom, excluding destruction or damage occasioned by pressure waves caused
by such devices
* Payments made to people employed in extinguishing fire.
* Subsidence and landslide, including rock slide.
* Natural calamities like storm, cyclone, typhoon, hurricane, tornado, flood and
impact damage.
* Damages caused due to bursting or overflowing of water tanks, apparatus and
pipes
* Bush Fire |
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