What is the meaning of fire in fire policy?
The term ‘fire’ must satisfy two conditions: (a) There must be actual fire or ignition; (b) The fire should be accidental. The property must be damaged or burnt by fire. If the property is damaged by heat or smoke without ignition it will not be covered under the word ‘fire’.
What is fire insurance called?
Yes. In addition to coverage provided under standard homeowners or renters policies, some insurers provide policies that primarily or exclusively cover damage related to fire. It’s usually called “dwelling fire” coverage, and it includes protection against fire, smoke, explosions and sometimes wind.
Which are covered by fire insurance policy?
Thought it is called ‘Fire Insurance’, apart from the risk of fire, it also offers cover against lightning, explosion/implosion, aircraft damage, riot, strike and malicious damage, storm , cyclone, typhoon, hurricane, flood and inundation, impact damage, subsidence and landslide including rockslide, bursting and/or …
What is the main objective of fire insurance?
Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.
What is the importance of fire insurance?
A fire insurance policy gives the financial security for home, furniture, shares, and other business assets. The policy is useful as it gives the price of properties and assets which get damaged due to fire. Hence, having a fire insurance policy is necessary for personal, social, and national sectors.
What is the meaning and purpose of fire insurance explain?
Fire insurance is a legal contract between an insurance company and the policyholder which guarantees that any loss or damages caused to the policyholder’s property in a fire will be paid by the insurance company. Fire insurance provides coverage against incidents of accidental fire, lightning, explosion, etc.
What are the important conditions of fire insurance policies?
If the fire policy covers various items , then each item will be separately subject to average. (11) This is the contribution condition. In the event of more than one policy covering the same property, the company will pay only the rate able proportion of the loss.
What is the function of fire insurance?
What are the main principles of fire insurance?
The following are the principles of fire insurance:
- Insurable Interest in fire insurance.
- The principle of Good Faith in fire insurance.
- The principle of indemnity.
- Proximate Cause of fire insurance.
- The doctrine of Subrogation.
- Warranties in fire insurance.