Does Home Insurance Cover Fires and Special Perils
by Arina Smith Insurance 22 September 2017
A house is one of the most valuable assets for the common man and therefore an appropriate cover from fire and allied perils must be taken to stay protected from likely risks. The buying fire insurance policy can cover losses in an event of a fire or other calamities and resolve the issue of rebuilding the house.
House insurance against fire and allied perils is an important aspect for staying protected from losses arising out of mishaps or calamities. Buying fire insurance cover for a house takes care of the financial and property losses in case of a mishap.
Buy Fire insurance policy
Since the fire in residential areas is devastating to live, general amenities and neighboring properties, it is essential to know which factors are covered under a fire insurance and special peril policy. Following are the aspects that a standard fire and allied perils insurance policy covers:
Building coverage :
Under this policy, a homeowner can cover the losses for the structure of the dwelling place. Structures attached to the insured dwelling under risk are also covered under this policy. For example, garage, storage units, etc. connected to a house is also given coverage under the fire insurance policy.
Personal Property :
Personal belongings like clothes, appliances, furniture, etc. come under the category of personal property. In such a scenario the fire insurance policy covers all the damages on the content of the house that get burnt during the calamity.
Detached Structures :
Buildings and other structures that are not directly attached to the insured area, but have a probability to get damaged by fires and allied perils are covered under the fire insurance policy.
Estimating the fire insurance coverage
Judging the area to be covered by fire insurance depends on the homeowner. If there are no attached structures or possible property that can get damaged in a fire, then fire insurance with personal property claim for the dwelling is sufficient. In other cases, opting for a comprehensive policy that covers fire as well as allied perils can be beneficial.
Things to remember while buying a fire insurance policy
The land on which an insured structure exists is not covered under the policy. Only buildings (dwellings) are covered under the fire and allied peril policy; hence renovation of land and other property aspects (like lawns) are not covered.
Before renewal/ buying fire insurance for a house, it is necessary to chalk down the reconstruction cost of the house from a certified broker or civil contractor. This helps to estimate the ‘sum assured’ while opting for a fire insurance.
Reinstatement cost must have opted while buying fire insurance policy since the market value is based on the depreciation of building and content cost of a structure.
Maintaining proof of insured items can be useful while settling claims.
Losses to unauthorized structures are not covered under fire insurance.
Apart from the above, the nuances of the policy can be understood by consulting online aggregators like paybima.com to arrive at the best fire insurance policy.