Fire insurance is a type of insurance that covers the damage and loss due to fire. It helps to cover the risk of damage to property due to accidentally or inadvertently fire. A fire insurance plan covers the damage that the guarantor may suffer for the losses that occurred due to a fire explosion. The plan specifies the extreme amount, which the protected can claim in the case of damage. However, there are different types of fire insurance policy in India that covers different aspects.
What Are The Types Of Fire Insurance Policy in India?
There are different types of fire insurance policy in India, which offers different coverage. So, one must know about the different types of fire insurance policy before they buy one. See the types of fire insurance policy in India below:
An insurance policy which includes risks such as fire, flood, riots, attacks, theft, etc., is known as a comprehensive policy to a certain specified amount.
A blanket policy is that which decides and currently incorporates all the assets under a policy.
It is other types of fire insurance policy where a settlement process is formed and the insurer has to pay the fire in the occasion of the devastation of the property.
It is a kind fire insurance policy that ensures risk for a certain amount. In the case of any damage under these types of fire insurance policy, the insurer pays all the damages delivered. It is certainly not more than the amount stated in this type of plan. Thus, the price of that property is not measured for this purpose.
This is a fire insurance policy which is insured if the property is insured, i.e. Insured for less than the value of the property. The insurer should only have a ratio of real loss, which depends on the actual value of the property at the time of loss of the sum insured.
When the insured’s stock fluctuates, then the insured can take the policy for the amount under the amount in which his shares do not normally come. In this example, the insured may have to take another insurance policy to cover the maximum stock that ever arrives. The former type of policy is called First Los policy and later it is called an additional policy.
It is a policy under which the insurer pays enough amounts to destroy property or property.
Open Declaration Policy
This is a policy where the insured deposits with the insurer and announces the value of the subject. The risk of such nature is covered. Such policies are generally taken, where the value of stock etc. is significantly fluctuating.
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The excess policy is strengthening fire protection policy, which is acquired to cover extra dangers past the inclusion of unique first misfortune policy. The sort of flame policy is bought by such dealers whose stock changes every now and then. In such a case, first misfortune policy is acquired for least stock worth and furthermore, an excess policy is bought for a foreseen increment in the all-out estimation of tock.
Consequential Loss Policy
The aim of this insurance policy is to compensate the insured against the loss or profit due to any obstruction of the business due to fire. It is also known as the loss of profit policy.
This type of fire insurance policy includes a variety of items and different types of goods for a premium at different locations. Generally, the premiums levied under this policy are average, which was paid if every batch of the goods was insured under the specific policy for a specific amount.
So, as you now know the different types of fire insurance policy in India you can buy one according to your requirement.