Disasters are rare to happen but when they happen, nothing remains. Such is the case of fire accidents. Think of a situation: you build a house by investing everything that you have earned your whole life, and suddenly a fire breakout turns it into a pile of ashes. There can't be a worse scenario to happen in life. Most probably, you would have borrowed a lot of money from different sources to build your house. So, if such a hazardous incident takes place, you not only would lose your shelter but also become liable to pay all the loans that you have taken to turn your dream home into a reality. Here comes the need of a fire insurance policy. Like every other insurance policy, it acts as a financial protection shield at your bad times. You can claim for all the losses incurred due to a fire breakout, provided that such a disaster was not intentional. Well, there are quite a few things that you need to keep in mind while you choose a fire insurance policy.
Scrutinize the coverage offered by the fire insurance policy Fire insurance is a broad term. There are different types of fire insurance policies like valued insurance, floating insurance, repair and replacement insurance and so on. Under valued fire insurance, the value of the property is not taken into account while issuing the claims. A particular value is fixed for the insured item, when you sign the deal, and you are offered the prefixed value, if a fire accident happens. So, the amount you get as compensation would not be sufficient to cover up all your losses incurred due to the fire breakout but still the compensation offered would provide you at least some relief.
The floating fire insurance policy is specifically formulated to insure warehouses or assets located at different locations. You just need to pay one premium to get coverage for all the insured goods. The amount of premium would depend upon the location where the property is situated and the value of the property.
Next comes the repair and replacement insurance. In case of a fire accident, you get full compensation to replace or repair the damaged item or building. So, you can choose a type of policy that suits your property and budget. If you live in an area, where chances of fire breakouts are high, it's better to go for the repair and replacement insurance.
Check the exclusion list
Fire insurance is a policy with a big list of exclusions. And, these exclusions are not the same for every type of policy. Some policies do not offer coverage for the items that got damaged during the fire extinguishing process. For instance, if your computer got damaged by water used to extinguish the fire, you would not get compensation for that. A lot of polices do not cover fire accidents caused by lightning or other natural calamities. So, you should scrutinize the agreement to find out what is covered and what is not, before you put pen to paper. Get more information by visiting the http://apexdoc.blogspot.com .
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