Types of Fire Insurance Policy

A fire insurance policy is a contract between a buyer and an insurer in which the insurer guarantees payment of damages or loss of the insurer's property for a specified period. The bond is originally purchased for one year and is renewable each year.

Fire insurance protects the property from unexpected risks, where the value of the assets is analyzed according to their market value, considering factors such as depreciation. Fire insurance covers accidental fire, lightning, explosion or explosion, etc. In addition, man-made hazards as well.

Types of Fire Insurance in India:

Specific Policy:
According to these rules, a certain insured amount is determined for a given asset, and compensation is given for any loss, as long as it is less than the specified amount.

Comprehensive Policy:
This policy provides broad coverage not only for fire hazards but also for all other hazards such as any other perils, such as robbery, burglary, civil rampage, etc

Value Policy:
When a policy is initiated, the value of a specific property is determined. Based on the premise of the value of the property, it is decided to ensure the policy, where the insurer will pay the amount of the property is extinguished by fire.

Floating Policy:
This type of policy is best suited for owners who have import and export businesses. This policy will cover and protect your goods in different locations. It should be noted that these assets must belong to the same individual, under an insured amount and a premium that covers all risks associated with the assets.

Consequential Loss Policy:
A fire outbreak in a workplace like a factory may damage the workforce that is production might go down but the fixed expenses will be the same. This policy essentially provides coverage for consequential loss or loss of profits. On the premise of loss of sales, the loss of profit is calculated.

Replacement Policy:
In this policy, the insurer offers indemnity for the loss of the property at market value. After considering the depreciation value of the property, the amount to be compensated is calculated. The compensation provided will be at the replacement price, which means that the new asset, on which compensation is provided refers to the new market price.

If you are worried about which fire insurance policy is the best according to your needs and requirements, you can reach out to Akshar Risk for any kind of information related to insurance.

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