Fire Insurance

Fire insurance can refer to or describe as a form of property insurance that covers damage and losses caused by fire by accident, not intentionally. Most of the policies come with some form of fire protection.

Anyone can purchase fire insurance for coverage if their property is lost or damaged due to fire. Why do we buy fire insurance? It is for a business person to save and cover the cost of replacement, repair, or property reconstruction above the property insurance policy limit.

Most of the time, fire insurance policies contain general exclusions such as war, nuclear risks, and similar perils.

The purpose of fire insurance is for the property coverage that pays for the damages and other losses you may have suffered from fire.

According to the report we gathered from the scene that happened in 2019, National Fire Insurance Association reported an average of over 354,400 houses fire every year.

It is very advisable to know what your coverage includes and what your options are for protecting your business.

Types of Fire Insurance

There are so many types, and we will list out some points. These includes:

• Comprehensive insurance policy:

Fire insurance is mostly called a comprehensive policy when it covers all other risks like riots, arson, loot, civil commotion, wars, strikes, accidents, and others in single insurance.

• Blanket policy: 

A blanket policy is also a fire insurance policy in which a single approach is used to ensure properties at one or different locations against fire risk. At times an organization or a person can have properties at various locations, and this type of insurance is useful for covering the risk generated by fire for these all properties.

• Consequential loss policy:

A consequential loss policy is for compensating the loss not directly to fire but incidental to the fire event. Loss of fire is also covered, but another kind of loss due to expenses on salary, interest, inflation, or hiring of temporary premises is also covered.

• Valued policy: 

A fire insurance policy, the value of a property is fixed at the time of inspection, is called a valued policy. So in case of loss of property by fire, the insurance company pays the full of policy amount when taking policy whether the property is wholly damaged or not.

The Way Fire Insurance Work

In this case, homeowner insurance gives policyholders coverage against damage or loss to their business or home. And it is also referred to as insured property, whereby this is a blanket term used to expatiate both the interior and exterior of the house and any other assets kept.

Another thing is that policies may also cover injuries a person sustains while on the property. If you have a mortgage, it is a good chance that your lender won’t advance your loan if your property is not covered.

Do I Need Fire Insurance?

Our research shows that about 75% of people in Nigeria don’t insure their house, and some other countries invest more in insurance, and most save from any damages or loss.

Now, your home and business are one of the most important investments, and fire insurance mostly protects you from a financial disaster.

Everyone needs fire insurance because anyone can experience fire damage at any moment, as homeowners insurance is vital, and do make sure your policy includes fire coverage.

Important of Fire Insurance 

Fire insurance provides security for home and business, furniture, enterprise buildings. Etc.

• It gives a price of damage for the building
• It provides alternative or maintenance expense for the electronic items, which is broken due to fireplace, like television, and computer.
• It covers the price of share damaged
• It also gives the loss of life advantages to the employee.
• It provides the alternative or maintenance price for the machines.
• It gives the employees medical expenses if they get injured due to the fireplace incident.

All the essential information above shows that fire accidents are very unpredictable and heavily destructive. For that reason having fire insurance is very much important.

Advantages of Fire Insurance

The advantage is incredible because it provides peace of mind to the policyholder if accidents occur. It provides financial coverage for the damage, whereby it can quickly help you restructure and revive the property in a new way.

It also helps the property owner take all precautions against the fire and make the property more secure from any fire than before.

Disadvantages of Fire Insurance

One of the disadvantages of fire insurance is the regular premium fee on fire insurance. The property owner must pay an extra premium amount for fire risk high. 

Along with insurance premiums, the property owner must take all precautions safety against fire accidents.

Otherwise, the insurance company may decline the fire insurance coverage after the accident.

Read more: Professionals Choice Doesn’t Have To Be Hard. Read These 7 Tips