fire insurance; It is a type of insurance that covers the damages caused by smoke, steam and heat in buildings, residences and workplaces as a result of fire, lightning strike and explosion.
Water, chemicals, etc. used in the process of repairing fire damage. Damages caused by products are also covered by fire insurance.
What is the Importance of Fire Insurance?
In our daily life, we may face many negative situations or accidents. One of these situations is fire. The loss of life and property, which falls into the material and moral negativities caused by the fire, affects and wears out everyone deeply. In this case, individuals can take out fire insurance to cover the material damage received. So what is fire insurance? What does fire insurance cover?
Fire insurance is the insurance that covers the material damages caused by the steam and heat caused to the buildings, residences and workplaces as a result of natural disasters such as fire, lightning strikes and explosions. The scope of fire insurance includes water, chemicals, etc. used in the process of repairing fire damage. Damages that may occur due to products are also included.
What Does Fire Insurance Services Cover?
Home insurance will pay for fire damage to your home, including damage to your property, contents of the building, and additional living expenses if you have to stay elsewhere while your home is being repaired. It covers hotel bills, groceries, meals and other living expenses that you may not be able to live in your home. Without collateral, many families would have trouble paying their living expenses if they had to find temporary living arrangements after a house fire.
Detached structures such as any shed, fence, or detached garage on your property are also covered by most homeowners insurance policies. Some policies will also help pay for landscaping costs, such as damage to trees.
If your car or other vehicle is destroyed or damaged by a fire in your home, it is not covered by homeowners insurance. The cost of fire damage to your vehicle is covered by the comprehensive portion of your auto insurance policy. If you only have liability insurance, there is no risk of damage to your vehicle during a home fire.
2-Fire Insurance for Business Owners
Fire damage to a business is usually covered by the underlying business owner’s policy. This includes damage to your business building, attached/detached structures, office equipment and inventory. When you need to relocate your business operations to a temporary location, most business owners’ insurance policies pay for additional business expenses. It is important to keep an up-to-date inventory of work equipment and other valuable work items. You should also keep important documents out so they are not destroyed in a fire.
Comparing the actual cash value to the replacement cost is also an important consideration when considering the cost of rebuilding your home. The cost of rebuilding can be significantly higher than the actual cash value of the home. The replacement cost option allows you to replace your damaged items with a new item of similar quality and cost. A homeowners policy that offers a replacement cost is usually around 10% more than a policy with a real cash value replacement option.
What are the Points to Consider While Making Fire Insurance?
While making fire insurance, the financial value to be covered is determined based on the building value. The cost to cover the entire reconstruction of the insured building is the compensation to be paid for the real estate. For the building value, the region where the building is located and the land value are not calculated. An approximate cost calculation is made according to these criteria. While making the insurance payment, the current size is used. If an agreement is made with the insurance company, compensation can be paid with the new value, provided that it is clearly stated in the policy.