Fire Insurance Policy

Fire insurance is an important form of insurance which saves the people from the expenses that may occur due to fires. Once any structure is covered under this insurance policy then all kinds of damages, losses or accidents happened due to fire will be incurred by the respective policy. Although fire insurance policies are included in certain standard property insurances also but generally these policies are needed to be purchased separately.

The cost of fire insurance policy alters to a great extent. One should follow the necessary precautions in order to decrease the uncertainties related to fire. The use of such precautions even helps in reducing the cost of policy. While purchasing such policy a great consideration is needed to be paid to all the conditions mentioned in it as there are certain exclusions also against which no security is provided by the insurance company. One of the examples of such exclusions is any fire incident that occurred due to an earthquake. Thus it is very important that the insured must be completely aware to all the points that are included in the policy.

A person who wants to take a fire insurance policy should directly contact to fire insurance office. He will get a form from there which should be filled by him. While filling up the form he needs to be completely honest and it is expected that all the details which would be provided by him are relevant and true. Before providing the policy, insurer will make all the necessary enquiries about the insured and until he get convinced about the insured's honesty, the policy will not be signed.

There is an individual called surveyor who is specially appointed to survey the proposed property and after surveying he makes an idea about the degree of risks involved. On the basis of this report, insurer takes the decision whether to accept or to reject the policy. As soon as the insurer is satisfied with all the collected facts, he provides his consent to the proposal. Now on the basis of the collected reports and information the rate of premium is fixed and until the final policy is issued a cover note is provided to the insured. This cover note acts as an evidence of insurance. Finally, now the policy agreement is prepared which contains all the necessary information, terms and conditions related to it.