General insurance Fire Insurance

[Mataracy]

Fire is a peril that leads to destruction of life and property. In some country, we often hear of fire destroying public buildings leading to economic and financial losses.

The items that are exposed to risk under fire includes:
i. Building
ii.Contents of building including plants, machinery and stock.

The cover provided under a standard fire policy includes lightening, fire and explosion. But because of this restriction in cover compared to the wide range of perils associated with fire.
This is why an insured can have extension in cover to enable the fire policy cover the following perils.

• Storm,tempest and flood
• Sprinkler leakage
• Earthquake

-Burst pipes
-Malicious damage etc

The above additional cover/ extension is what us called special perils which are additionals to the cover provided under a standard fire policy.

For the purpose of fire policy, fire is defined as the actual ignition of something which ought not to be on fire.
For example, in an attempt to fry an egg, one would need to put the frying-pan on fire,put oil and then the egg. Without all these,you cannot get a fried egg. If in the process there is ignition leading to fire and destroying the building, contents and other household items. The frying-pan, oil and egg ought to be on fire but the destruction of the building contents and household goods and personal effects are not suppose to be on fire will be compensated for by the fire insurance policy.

 

[Mika]

You have a warehouse, you can buy fire insurance for your warehouse and recover from financial loss if a fire breaks into your warehouse. What if there is an earthquake and your warehouse is destroyed? I think the best option is to buy a policy that covers all potential risks, not just one risk.

 

[Mandy96]

To my understanding, I believe “fire insurance” covers any losses caused by fire so if this is true then I think this kind of insurance policy goes a long way. For example, let’s say a particular insured individual got involved in an accident caused by fire and this disaster happen to destroy the insured properties, this means the insurance company will compensate the insured.

 

[Wisdom01]

I think most times if you are into selling goods that are more pose to fire damage or occurance then the person can go for such insurance policy ,like for instance ga business and other fire posed business ,since the person needs to cover such and also take precautions too