Thus the fire insurer shifts the burden of fire losses from their actual victims over to all the members of the society.

What is fire insurance policy. The perils of fire lightning smoke windstorm hail explosion water escape strikes riots or civil commotion impact by aircraft and vehicles vandalism and malicious acts. Optional coverage for which you can buy insurance such as earthquake or sewer backup. The property insurance is the insurance that protects the physical goods and the equipment of the business or home against any loss from theft fire and any other perils.

What is covered under fire insurance policy. Fire insurance is a contract of good faith. Depending on the strength of your policy you might receive coverage for the incidental fire destruction from smoke charring lost income due to prolonged business closure and even the damage caused by firefighters.

It relieves the insured from the horror of the fire losses to which he is exposed. Standard fire insurance policies provide coverage against financial loss or property damage caused by a fire or other covered perils. Fire damage is covered by the standard contract.

Other damages may be added to the contract at a later date. The policy can cover the building including plinth and foundation plant and machinery stocks furniture fixtures. If the fire is due to any heating or drying process then such fire is not covered under the fire insurance policy.

Fire insurance policies are classified into 15 types based on insurance hazards insured risk business type policy rules. If you live in a condostrata or mobile home you require customized insurance for your property type. The insured perils included in comprehensive and other policies include coverage for aircraft or vehicle impact fire lightning theft and window breakage.

It is a cooperative device to share the loss. What are the parts of a policy. Fire insurance is a device to compensate for the loss consequent upon destruction by fire.