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6 Ways to Save an Extra on Fire Insurance Policy

A fire insurance policy recompenses for any loss or destruction caused to goods and a property by fire. It only covers for damages during a specific period and up to the agreed amount.

Provided the fire resulted due to unintentional and accidental reasons. You should get the best fire insurance policy after comparing different policies from reputed insurance companies.

It covers property destruction, damage to the premises and loss of goods (raw material, semi-finished and finished goods)

How to Buy a Fire Insurance Policy?

You can buy a fire insurance policy online by submitting the necessary information to the insurance company.

You should mention both the immovable and movable items/properties that should be protected by your fire insurance policy.

  • Building - It is possible to buy an insurance policy for complete as well as under construction projects. The insurance coverage includes interiors of the building, partitions and electrical equipment’s.
  • Plant & machinery - brand new machinery as well as old machinery can be insured by mentioning the item’s name, specifications, and price.
  • Cables and Pipelines - The cables and pipelines can also be included in the insurance policy
  • Furniture - office furniture such as tables, chairs, and other accessories can be covered by a comprehensive insurance package.

Tips to Save On Fire Insurance Premium

To save the premium of the fire insurance policy, you can take the following steps:

  1. Installation of Smoke Detectors: Installation of smoke detectors and other security systems will lead to early detection of the risk. There are fire warning sensors and alarms, which can detect fumes immediately.
    The property damage can be prevented or reduced by choosing the best alarm systems. If the insurance company is convinced with the installation of safety devices, you can get a discount on the insurance premium.
  2. Deductibles: Instead of opting for the lowest possible deductibles, you can opt for the highest possible deductible so that the insurance premium will be low.
    If the risk associated with the stock or internal items are low, you can choose the lowest possible deductible. You should not forget the fact that the highest deductible will make you pay more out of your pocket in the event of any damage.
    Hence, you should strike the right balance by opting for the most appropriate premium as per your needs.
  3. Get Insurance from the Same Company: While renewing the insurance policy, you can strike a deal by continuing your association with the same insurance company. Some insurance companies will reduce the deductible during claims.
    However, you can shop around to get better deals from other insurance companies. You should compare the features and the premium and should settle for the best insurance plan to fulfill your needs.
  4. Inform the Improvements: If there are improvements at the premises, you can bring them to the notice of the insurance company. If the insurance company is satisfied with the installation of the fireproof equipment and fire safety devices, the insurance company can reduce the premium.
    The safety training provided to the staff at the workplace will also have a positive impact on the assessment of risk within your premises. You should take steps to convince the insurance company that the risk of fire is low or the fire mitigation systems are in place as per the latest standards. Thus, it is possible to reduce the premium substantially.
  5. Manage the Record of your Possessions: While buying an insurance policy, you should manage an accurate record of your possessions. The items which should be covered by the insurance policy should be listed and you should mention the value of the items as well.
    If you keep a record of your valuable items, they can be quoted in the claim very easily. You can also take a video so that you can identify the items accurately after the mishap.
  6. Bundle with Other Insurance Policies: If you buy two or more insurance policies from the same insurance company, you are likely to get a discount on the insurance premium. If you buy insurance cover for your automobiles from a general insurance company, you can buy a comprehensive insurance policy to cover the property as well. The insurance company will give a discount on the 2nd insurance policy to the extent of 5% or 10%.

Conclusion

Fire insurance is nothing but a contract between the insurance company and the insurer, wherein the insurer will compensate the losses occurred at the insured property due to fire. To make a fire insurance claim, you should establish the actual fire or ignition and should prove that the fire is accidental. You can save the insurance premium by taking steps to reduce the risk at the premises.