Fire hazards are covered by Fire insurance.  The fire insurance not only protects losses but also protects from The damages due to fire are reimbursed with the aid of fire insurance and the company does not lose much. The person is safeguarded against such losses and his property, company, or industry remains in nearly the same position before the loss gruesome consequences. Under this insurance the risk of war, instability, riots, etc can also be covered. Fire waste would rise not just for the individual but also for society in the absence of fire insurance.

As per fire insurance, the following constitutes to be an insurable property

  • Electrical installation in building
  • Building
  • Contents of building such as machinery, plant, and equipment, accessories, etc.
  • Goods (finished/WIP) and raw materials in factories and godowns
  • Furniture, fixtures, fitting, etc.
  • Pipelines located inside or outside of compound etc.
  • Contents of dwelling, shops, hotels, etc.


Kinds of Fire Insurance Policy

  1. Valued Policy

At the moment of the inspection, fire policy is defined as a valued policy, the worth of a property. So if the property is lost by fire, the insurance company pays the whole value of the policy when it takes the policy of whether or not the property is completely ruined.

  1. Valuable Policy

Here, the value of the insured property shall be calculated at the time of loss, the claim shall be paid at the time of the damage, according to the market value of the property.

  1. Specific Policy

This insurance provides for specified policy coverage that is not the market value of the property and is applicable for a certain property for a specific length of time. The amount of compensation given is not more than the policy cover.

  1. Average Policy

The losses are shared in a predefined proportion by both the insured and the insurance company. The insured policy does not cover the whole value of the property with an insurance policy.

  1. Floating Insurance

Two or more properties present for an insured at separate sites are covered under a single policy of this nature. The insured pays a single premium, which provides him with the convenience to purchase several policies.

  1. Adjustable Policy

the quantity and premium of insurance is first calculated based on the current stock value and then modified according to the change that the insured provides in a regular fashion. The value of shares may vary; thus, it is difficult for the insured to decide which insurance coverage level should be acquired. here The premium fluctuates on a professional basis.

  1. Blanket policy:

A blanket policy also provides fire insurance coverage that uses a single method to protect properties from fire risk at one or more sites. Sometimes a company or person might have properties in several places and these types of insurance are helpful in protecting the danger of fire in all of these assets.

  1. Declaration Policy

The Insured shall take insurance policy for the stock’s maximum worth and shall report particularly on the day of the month of the change in stock value to the Insurance Company.

9. Excess policy

This policy is intended for those people who face fluctuation in their stock value. In this situation, the insured buys two policies – First minimum stock value loss insurance, and Excess stock value policy. The minimum inventory value is determined on prior experience and the insurer is advised every month of the excess value of the inventory.

  1. Reinstatement Policy

Here, instead of giving monetary compensation, the insurance Company repairs or reinstates insured property for fire damage.

  1. Comprehensive insurance policy

fire insurance covers most other hazards, such as riots, incense, looting, civil disturbance, war, strikes, accidents, and so forth, and is generally termed an integrated policy.

  1. Consistency loss policy

A consequential loss policy offsets losses not directly to fire but by fire. Fire loss is also covered, but there is also another form of loss because of pay, interest, inflation, or temporary accommodation expenditures.

Hence Fire insurance is a contract in which an insurer promises to make good for any damage caused by the fire over a certain time with regard to the premium paid. In event of loss, the particular sum to be insured or claimed should be stated or indicated in the contract. For us, Fire insurance should be a cover against a fire accident hazard.

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