Exploring the Importance of Fire Insurance

When thinking about the future, one tends to have some happy thoughts. But it can take, quite practically, the smallest spark to grow into a big fire to upset all these happy thoughts and grand plans. Your future is only as secure as you make it. If you have thought ahead about securing your future as well as that of your family, you may have thought about insurance. Commonly, people think about insuring their lives and health, and their vehicles. But what about your immovable properties, like your house or your office space? What if they were to be gutted in a fire? Have you thought about fire insurance?

The Need for Fire Insurance

Whether you have a studio apartment in a crowded city, or a standalone mansion in a remote village, your house probably holds a lot of value for you as well as your family. This is the case with almost everyone. Where one lives holds not only monetary value but a lot of your memories as well as potential. However, at the end of the day, accidents can happen to anyone. It may take a small accident to cause some major damage to your house. This can also be the case with your office space if you own it. For entrepreneurs, artists, and everyone who holds separate office space for work, taking care of this space can be as important as taking care of their house. How do you do that? To begin with, you ensure that all the necessary safety measures are in place. For example, your electricity supply lines are laid well and pose no threat to the structure or the security of the people. However, accidents may still happen. To protect yourself from any damage caused due to such accidents, you can consider home insurance. One of the policies you can get for your immovable properties, such as your house, is fire insurance.

What is Fire Insurance?

Suppose there was a fire in your house. The consequences of this could range from minimal damage to complete destruction of the property and all your belongings it housed. It could cause a significant upheaval in your life, and probably that of your family members as well. While dealing with the loss emotionally and physically, you may also have to deal with the financial loss that the fire may have brought on. To deal with the latter, a fire insurance policy may help. There are a few types of fire insurance policies available in India today. The coverage you get will depend on the type of policy and the coverage chosen. At least a part of the loss to property brought on by the fire can be covered by the policy, i.e., you would be reimbursed for the same. A fire insurance policy is usually offered annually. So, once you purchase this policy, the coverage lasts for a year. If you want to extend the coverage, you can renew your policy when it is about to expire. If you still want to keep yourself safe against any loss to property due to fire, you can choose to renew the policy.

Types of Fire Policies

There are two common categories of policies you can opt for to get fire insurance for your house or office space. These are – ‘Standard Fire and Perils Policy’ and other ‘Special Policies’. The latter is a category that comprises several policy sub-types. Here is a look at the details.

-  Standard Fire and Perils Policy

This is one of the most commonly available policies that offer insurance against fire as well as some other possibilities, such as explosions, lightning, impact damage, storm, hurricane, flood, landslides, and more. The scope of the policy can be increased with add-on covers to make it suitable for your needs.

-  Special Policies

The common sub-types included in this category are:

-  Floater Policy

If you have a warehouse or a storage space where an inventory of your belongings lies, you may want to ensure that any damage to this inventory is covered. In this case, you can opt for a floater policy. For a single sum insured, this can cover all your belongings in a storage space (or multiple of them), which may be suitable for stockists or sellers.

-  Declaration Policy

If the stock stored can fluctuate in value, this policy can help you avoid under-insurance. Here, you are required to declare the value of the stock periodically.

-  Floater Declaration Policy

If you have stock fluctuating in value and stored in multiple locations, such a policy can help you get fire insurance coverage for the same. Coverage against fire is a specific type of home insurance. You can choose this for specific needs or get a more inclusive type of policy to get a wider scope of coverage.   *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.