Do I Need Fire Insurance?
- DetailsWritten by PolicyBazaar -
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Updated date : 24 March 2020
Fire as soon as this word strikes your mind the first word or image you can perceive is dangerous.
Undoubtedly, fire is important as it is used in the household to prepare mouth-watering delicacies and is also used by different industries and for various other commercial purposes. However, we cannot deny the fact that when it comes to physical structures fire does become a serious aspect.
You must have heard instances either from somebody you know in person or through different medium such as television or newspaper that a house, shop, godown, etc. got burnt because of so and so reason. News like these are disheartening. And, the person who suffers the loss, it is indeed a breakdown period for them and it is exhausting both financially and emotionally.
Fires can be destructive as they emit smoke, flames and heat, which can easily damage a building and any of the content. Fire accidents are sudden and it causes massive destruction, which can easily bring your life to a halt for some time.
Therefore, it is prudent to buy fire insurance and protect your home/ business and its content. Fire insurance secures you and provides you with a cover for any loss/damage incurred due to fire.
Fire Around! Fire Insurance At Your Rescue
It is to be noted that a fire insurance does not only protects you from fire-related perils but in fact, from other losses as well.
Now, let us understand the common perils wherein fire insurance will come at your rescue, as follows:
- Any sort of fire, implosion or explosion
- Any damage incurred due to an aircraft or any air-borne devices
- Any malevolent acts such as riots, the strike which causes damage
- Any natural calamity such as flood, typhoon and so on
- Bursting or overflowing of water tanks or pipes
- Any damage caused to your property either due to a rockslide or landslide
- Any damage incurred due to water leakage from sprinkler installations
- Setting fire to bushes also at times result in damaging the property
- Damaging because of missile testing operations
How to Select Best Fire Insurance Policy?
With a plethora of fire insurance policies available in the market, there is a possibility that you might get confused too, which fire insurance policy to zero down. When choosing the fire insurance policy, consider the following factors and make the right choice:
- Know the Type of Risk: While buying a fire insurance policy it is important to identify the potential risks and look for a policy accordingly. For instance, if you are looking forward to insuring assets at different locations then you should consider opting for a floater policy. In case, if you are unable to ascertain the value of the assets then going forward with a valued policy will be a wise step. Therefore, it is prudent to choose a fire insurance policy based on the risk that you might encounter.
- Nature of the Asset: It is to be understood that different assets can be insured under different types of fire insurance plans. In case, you need to any fixed assets or property then you can opt reinstatement or a replacement value policy. Zero down a fire insurance policy on the premise of the assets that you are looking forward to insuring.
- Duration of The Coverage: Before you opt for the fire insurance policy it is better to know the time-frame for, which you will require the ceratin or specific coverage.
- Exposure Risks: Another important aspect is to identify the asset, which is exposed and then basis that buys the right type of fire insurance policy.
Replacement Value Policy VS. Reinstatement Value Policy
When it comes to replacement value policy, it essentially implies that the insurance provider will pay for the incurred expenses of replacing the total asset that has been either damaged or lost due to any fire-related peril.
On the other hand, when it comes to reinstatement value policy it implies that the insurance provider will pay for the expenses incurred in the process of replacing the property damaged back to the same condition as it was before the loss incurred due to fire.
Besides, replacement value policy can apply to other assets but the reinstatement value policy is not implied on any other assets apart from buildings.
Important Fire Safety Tips
A fire outbreak can happen anywhere at any point in time. Therefore, having your property insured with the right type of fire insurance is a good and beneficial choice.
Listed below are some essential fire safety tips, which should be considered by one and all:
- Primarily, the building or your property must be installed with smoke detectors as that in case of any adversity occurs you get aware immediately. Besides, installing these alarms are not merely enough. It is important to keep a check on the alarms that are in use are been functioned properly. Replace the batteries of the alarm from time to time.
- Another important thing, which must be there at everyone’s home and every office premises is a fire extinguisher. Besides, if required a proper training should be given the usage of a fire extinguisher in case of fire-related emergencies.
- If under any unfortunate circumstances your clothing catches fire, then do not run. Running will not douse the flames rather it will increase the intensity of the flame. Roll on the ground and with the help of a heavy rug or blanket, the flames need to be smothered.
- During the winter season if one uses fire to warm one’s place, ensure that a fire safety gate around the fireplace is rightly installed.
- Any item or material that can easily catch fire should be handled a kept carefully and cautiously. If not done so, during a fire outbreak the destruction could be massive and risk the lives of everyone.
- Have a fire escape plan handy. Besides, right from the employees of an organization or the members of the family everyone should be well informed with the plan and should escape efficiently in case of any fire-related adversity.
- In case you witness a fire outbreak try to escape from the location at the earliest. Do not stay any further or think of collecting ay item. Remember, nothing is precious than your life.
- In case you witness the fire outbreak and the fire alarms installed to pull the fire alarm and save the lives of others as well.
- On the off chance, if there is air at your home, lie down on the floor as smoke usually rises higher. This will help you to breathe and you could be safe for a longer duration until help arrives at the scene.
- In case you are caught in a fire and you are locked inside, try to block the area from where the smoke can enter. Place a wet cloth at the entry of the door that is the bottom of the doors this will help you to survive for a longer duration until some help arrives.
- Last but not the least and most importantly inform the fire department as soon as possible and let the professional do their job effectively and efficiently.
Wrapping It Up
It is advisable to buy a fire insurance policy and secure your home or the property from any fire-related perils. However, you need to be careful and identify the risks and understand the nature of your asset.
This way you will be able to make an informed and a wise choice of the right fire insurance policy. Before you sign on the dotted lines, make sure that you read the terms and conditions of the fire insurance policy schedule.
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