Police and Fire Insurance

Police and Fire Insurance

Fire insurance comes in scene when one is subject to fire damages more times a year than people living in other parts of the country but also for those who feel the need to be cover by all possible unfortunate events. The fire insurance can be arranged into three different classes: the insurance that will cover fully the cost of the damaged house, the extend replacement insurance that is covering the extra costs and the actual cash value insurance that is covering the replacement minus the depreciation.

Police and Fire insurance costs can cover the depreciation or the appreciation of a house. It can include the good inside the house or not, in case these were covered by other type of insurance. The fire insurance depends also by the neighbor surroundings, in case in live in a crowdie neighborhood or faraway from the city. The fire insurance can cover also you living arrangements. For example in case you house is fully damaged and there is no possibility for you to continue living, the fire insurance can cover the costs of a hotel stay until you will be able to come back living in your own house or other living arrangements.

Fire insurance is a mark in America with a history that passes 200 years. The fire insurance does have terms and conditions. It can depend on the size of the house, the age of the construction and the architectural value, other structures that can be included as guest house, gazebo or garage. Some fire insurances plans may also add as endorsement the jewelry and furs which can be partially or totally damaged in case of fire. The police and fire insurance companies conduct detailed investigations in case houses and properties suffer damages to make sure the reason that cause the fire is eligible for the insurance policy and the so called “acts of God”, earthquakes that can start a fire, storms or other natural causes are included in the coverage list.

TYPES OF FIRE INSURANCE POLICIES

Insurance companies have issued wide range of fire insurance policies to fulfil the varying insurance needs of customers in competitive insurance market. These varied fire insurance policies comprises of varied types of risks as per the requirement of the insured party.

Some of the famous fire insurance policies are mentioned below:

Specific Policy: This policy states that the insurer is liable to pay fixed amount as mentioned in the policy contract and which is less than the real value of the property. The actual value of the property is not considered for determining the insurance coverage. This policy does not include the average clause which makes the insured liable to pay for the portion of loss himself.

Comprehensive policy: As the name suggests it is comprehensive policy that offers insurance coverage for the loss caused by fire, theft and other third party risks. In addition to these, the policyholder is also covered for the loss of profits in income due to damage caused by fire till the time business stays closed.

Valued policy: The valued policy differs from the standard indemnity contract as the indemnity amount is fixed and it does not take actual loss into consideration.

Floating policy: This policy has ‘average clause’ and extent of coverage of the same contract encompasses the different properties of the policyholder with one premium. The policy also offers coverage for goods stored at different storage locations.

Replacement or Re-instatement policy: This policy has re-instatement clause that makes the insurance company liable to pay for the replacement of damaged property due to fire. In such policy, insurer can re-instate the property rather than paying cash to the insured.

Average fire insurance Policy: An average policy is subject to average clause which requires the insurer to make payment for only certain fixed percentage of the loss borne by the insured to the actual value of the insurance.

Sprinkler leakage fire insurance policy: This type of policy provides insurance coverage for the loss of building due to the damage caused by the leakage of water or liquid.

Excess fire insurance policy: This policy is issued to provide coverage for the stock of merchandise whose market value fluctuates constantly. In such cases, insured buys a policy for minimum stock value and excess policy for excess stock value. This policy includes the periodic reporting of actual stock value.

Declaration fire insurance policy: This policy provides coverage for the stock whose value fluctuates by large margin throughout the contract period. For such policy, 75% of the premium is deposited in advance. The maximum liability of insurance company is specified by the insured in the policy. The calculation of the final premium and average stock is done at the end of year.

Maximum value with Discount policy: This policy provides coverage for maximum amount of risk. At the maturity of the policy, insured gets refund for the one third discount of the premium paid.

Schedule Policy: A schedule policy provides insurance coverage for many properties under collective terms and conditions. This policy has a separate list of all the properties and their respective rates of premium.

Loss of profit policy: This policy provides coverage against loss of profit resulting due to fire. It is also called as consequential loss policy.